Champions South Shields were beaten in their final game of the season as Stafford Rangers ran out 3-0 winners at Marston Road.
The Mariners were a goal behind at half-time after Ethan Stewart headed the home side into a third-minute lead.
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South Shields FC can confirm manager Kevin Phillips is to leave the club by mutual consent.
Since promotion to National League North was confirmed earlier this month, discussions over the future direction of the club have been held between Kevin and chairman Geoff Thompson.
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South Shields face their final assignment of a historic season on Saturday when they travel to Stafford Rangers (3pm kick-off).
The Mariners head to Staffordshire as champions of the Pitching In Northern Premier League, and are looking to end their campaign with fourth straight victory.
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South Shields players and staff were guests of honour at a special civic reception to mark the club being crowned champions of the Pitching In Northern Premier League.
The club was welcomed to South Shields Town Hall, where it was congratulated on its success by the Mayor of South Tyneside, Councillor Pat Hay.
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