Ashley Westwood has left his role as head coach of the SAR football team after reaching "a mutual agreement" with the Football Association of Hong Kong, China (HKFA).

The association made the announcement on Monday, just days after the local squad suffered a 2-1 Asian Cup qualifying defeat by Singapore on home soil.

The HKFA said it would "properly handle all follow-up arrangements", after the two sides agreed to end the working relationship.

"HKFA extends its sincere gratitude to Westwood for his contribution and wishes him success in the future," the body said in a statement.

"HKFA will initiate an open recruitment process for a new head coach and will finalise and announce an interim head coach as soon as possible to ensure the continued development of the Hong Kong, China Representative Team."

Westwood was appointed the team's head coach in August last year on a two-year contract, replacing Norway's Jorn Andersen.

On the association's social media, Westwood was quoted as saying it is time for someone else to take the team forward.

"The time has come to step aside. It's been an incredible 15 months with progress in ranking, playing style, and lifting a trophy in the [East Asia Football Federation] qualifiers," he said.

"The disappointment of not qualifying for the Asian Cup is something I have to live with, and nobody is hurting more than me. Seeing Kai Tak full of amazing fans, seven straight wins, record attendances, and a united region are memories I'll never forget."

Last Tuesday's defeat to Singapore crushed Hong Kong, China's hopes of advancing to the 2027 Asian Cup football tournament.

Despite the loss, association chairman Eric Fok announced that the board and management "have unanimously decided" to award HK$1 million to the players and team members who participated in the match against Singapore to recognise their efforts and determination, as well as to motivate them for future challenges.

The association added that it has activated contingency plans, while holding intensive discussions to comprehensively review the team's management, performance and technical strategies.