The 61-year-old has officially had his employment with the
Toshack's position had been the subject of considerable speculation since Wales was beaten in its opening
Reports appeared over the weekend claiming that Toshack was poised to resign and his departure, announced at an FAW press conference, came as no surprise.
It became apparent, however, that Toshack wanted to carry on, at least until after next month's games against
Toshack revealed he had agreed with the FAW earlier this year to review his position after those games anyway.
He said: "It might not sound a very positive thing to say - but if results were to go against Wales I would have preferred that to happen with me still in charge.
"I think that would have been better for everybody.
"If we hadn't got them the scapegoat would have been quite easy, I would have accepted that.
"I was prepared to carry on for these next two matches until the situation was reviewed."
Toshack came to the conclusion that he and the FAW should take stock of the situation after next month's
Wales travelled to Osijek for that game at the end of last season with a threadbare squad after 15 players were ruled out for a variety of reasons.
Toshack said: "To go to these games with such a poor turnout - I'm not saying some of them weren't genuine but I do know some of them could have been there.
"I did say to the president after the game that I thought after the first three matches of this group we would review everything."
Wales does not play again after October until its home clash with Group G favourite England in March.
"If any decision needed to be made it could have been made in that five-month gap," added Toshack, who oversaw 21 wins in 53 internationals.
Toshack was downbeat after the 1-0 loss in Podgorica but claimed quitting never crossed his mind.
He continued to work as normal despite the uncertainty surrounding his position and travelled to
It is only since returning and meeting FAW officials that a decision has been made. "I wouldn't have gone to Sofia if I was thinking along the lines of finishing," he said.
"But we have come to the agreement that it may be better for everyone concerned if a change was made now.
"I spoke to the president and he maybe came up with one or two things I hadn't thought of."
Toshack, who had a brief stint in charge of the national side in 1994, returned for a second spell in the job almost six years ago.
He oversaw a huge transition of playing personnel with the likes of
Young talent such as
Toshack admitted pride prevented him trying to build bridges with some of those players.
He said: "We have had phone calls Sunday evenings - someone has retired when we haven't had too much time to get someone in.
"Ryan is the only one who did it the right way. He came to see me, we sat down and had a chat and explained his thoughts to me.
"To pick up the phone Sunday evening I don't think is the right way to do things.
"Some have asked me would I go back and ask them would they play again and I have said, 'Never, ever'.
"Maybe that is a fault of mine, but my pride ... if a player has retired from international football I would never phone them up and ask them to come back."
The FAW says it has put no timeframe on the search for a successor but has just four weeks before the Cardiff clash with
A decision has not been made either on whether it should appoint a caretaker or bring in a full-time manager immediately.
FAW president
He said: "As has already been said, this is a mutual agreement between the parties."
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