Brian Smith has announced his shock resignation as head coach of Parramatta, saying he didn't feel he was the man to guide the NRL club out of crisis.

Smith, who was informed before the start of this season his 10th year at the club would be his last, said that decision and the poor start to the year had worn him down.

"I ask questions of my players and staff every day about my level of commitment and whether they have the commitment and desire to get a tough job done," Smith said at a hastily arranged press conference outside Parramatta Stadium.

"I ask myself that question every day and the answer was no this morning.

"Now is the right time for me to do what I've done.

"Time's running out and something needs to happen very quickly.

"I don't feel I'm the one any longer that is to lead the club out of the situation they're in.

"I'm being honest with myself about that and I think it's appropriate for me to step aside."

South Sydney-bound assistant coach Jason Taylor has been appointed interim coach for the rest of the season at Monday night's board meeting.

Smith has been under intense scrutiny after a woeful start to the year which has netted the Eels just two wins. The club is third last on the competition table and requires 10 wins from its remaining 15 matches to have any hope of contesting the semi-finals.

Only a week ago, chief executive Denis Fitzgerald assured reporters Smith would see out the end of the year.

But Smith took a shot at the Eels boss for his decision to announce his replacement, Newcastle mentor Michael Hagan, before the season began.

"To be honest, I think some tough things need to be done at the club right now," he said.

"The situation has been tough all season given the circumstances about my own future and therefore the futures of lots of players as well.

"That's led to an environment I've not encountered before and given the results on top of that I just don't have the commitment level to do what needs to be done.

"It's not right or proper for me to stay in the job."

There was no hint of a bombshell announcement after Sunday's 22-18 loss to the Bulldogs, with the veteran mentor maintaining the Eels were capable of turning their season around.

But the 52-year-old revealed he only decided to resign after feeling he wasn't up to the task on Monday morning.

"Getting ready for another game against Penrith on Friday night I just felt like, I guess it's been a little bit in my mind, but today was the appropriate time for me.

"I guess there's been some thought about how this season was going to run from the time I was told my services were not required for next season.

"It only became a more dominant thought in the last 24 hours.

"I just had a chat to my wife a little while ago because she didn't know about it either.

"She kind of knew but when she left home this morning she didn't think I was going to do this today, that's for sure."

Smith said he would not link up with his future club, Newcastle, until the end of the season, saying he needed a break.

He said the players were stunned by the news and he had an emotional chat with Test second rower Nathan Hindmarsh, who is in camp with the NSW Origin team, on the telephone.

"It will be tough, but it's possible," Smith said, for the Eels to win the competition this year.

"I wish we could have all won a comp together but I feel very pleased and proud of what I've achieved in general terms over that 10-year period."

Knights chief executive Ken Conway said Smith's decision wouldn't have any impact on his commitment with the Knights.

"There are no implications from our end, other than when Brian starts with us next season he'll be fresh.

"He won't come on board any earlier."

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