Gerardo Martino has resigned as Paraguay national team coach, just days after he led the team to the final of the Copa America.
Martino also took Paraguay to the second round of the FIFA World Cup last year in South Africa.
Paraguay fell 3-0 to Uruguay in Sunday's final of the Copa America, the South American championship.
The Argentine said on Friday he was resigning because he was unsatisfied with the team's progress since the World Cup.
Martino was a candidate to take over the Argentina national team, but that post will be filled by Alejandro Sabella, the former Estudiantes coach.
Reports in Paraguay say Martino will be replaced by Francisco Arce, coach of Paraguay club Rubio Nu.
Paraguay National Team
Argentina cruised past Venezuela 3-0 at home while Colombia remained on course for an automatic FIFA 2014 World Cup berth after sweeping aside Bolivia 5-0 in the latest round of South America's qualifiers.