Micky Mellon is expected to drop down two divisions to become the new manager of Tranmere after leaving Shrewsbury.
The 44-year-old told his squad on Thursday before training he was leaving the Sky Bet League One club after almost two-and-a-half years, Press Association Sport understands.
Shrewsbury later announced Mellon's exit, with assistant Mike Jackson also departing. The pair are understood to be heading to Tranmere, who sit ninth in the Vanarama National League and sacked Gary Brabin in September.
"Shrewsbury Town manager Micky Mellon has left the club by mutual consent," read a statement on Shrewsbury's official website.
Mellon had three spells as a player at Tranmere and made 205 appearances for the club. Jackson also played 102 times for Tranmere.
Mellon joined Shrewsbury in 2014 and guided them to promotion from League Two in 2015 before keeping them up last season. He leaves with Shrewsbury in the relegation zone ahead of Saturday's trip to Bradford.
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