Arnold left Central Coast Mariners mid-season and only joined J-League side Vegalta Sendai five months ago and endured a winless start to his tenure, featuring four losses and two draws.
After Vegalta's 4-0 loss at Urawa Reds, Arnold requested a meeting with the club’s President which took place when the squad returned to Sendai.
It was at that meeting where the one-time Australia coach outlined his concerns with the direction in which the club was moving.
'I told the President directly that I wasn’t happy with the age of the squad, with the fact that we hadn’t been able to make a lot of change and that many of the older players were resistant to change," Arnold said.
All of the off-season domestic transfer dealings were taken by the club’s sporting director and it left Arnold with a squad unbalanced in both numbers and age, with 17 of the group over the age of 30.
'I told the President directly that I felt as if I was coaching someone else’s team and in the end I have my standards to uphold," Arnold said.
'I left the meeting for them to discuss the direction of the club and they said they needed to consider the sponsors and supporters and I understand that.
'In the end it was genuinely a decision that we arrived at together; things weren’t working with the changes we’d liked to have made and we agreed to part ways.
'Despite the way things ended I walk away with my head held high and I feel I’ve become a better coach and a better person. I’ve got no regrets and I enjoyed every minute of the experience."
Arnold also denied reports that he had asked for a payout.
The World Game understands Arnold will be paid for the work he has done so far, having recommended to the club that any money it saves on a payout be used to help retain the services of fitness coach Andrew Clark.
It is believed that Clark is negotiating with the club while the future of on-loan players Michael McGlinchey, from the Mariners, and Danny Vukovic, from Perth Glory, remains up in the air.