Michael Hagan has resigned his job as head coach of the NRL club Parramatta citing family and personal health reasons.

Hagan held a press conference on Tuesday to announce he was quitting the Eels one year short of completing his three-year contract.

The former Newcastle coach has been under pressure after the Eels performed poorly this year, missing the finals when big things were expected after they made the grand final qualifier in 2007.

Former NZ Warriors coach Daniel Anderson had already been touted as a possible replacement as he's returning to Australia without a job after a successful stint with St Helens.

However, Hagan said other reasons were responsible for his decision.

"My daughters are in their final years of high school in Newcastle and the constant travel was taking its toll," said Hagan in a statement.

"I've also got a number of issues with my personal health which I need to get sorted out.

"After much thought and discussion with those closest to me I decided it would be best to go now prior to the start of pre-season training."

Eels chief executive Denis Fitzgerald said the club was surprised by Hagan's decision but understood the reasoning for his decision and was sympathetic to his situation regarding his family and also his health.

Fitzgerald said the club would not be rushed as it began the search for his replacement but he expected to have a new head coach in place by Christmas.

Assistants David Fairleigh and Matthew Cameron would run the team, in the meantime.

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