Hareide took over after Arnar Vidarsson in April 2023 and was in charge of Iceland for a total of 20 international matches.
Iceland had a tough Nations League and must qualify against Kosovo in March next year to keep their place in the B-division.
But without Hareide, who has a long background as a coach in Allsvenskan clubs.
I've made up my mind. It's enough that I'm quitting now. I have a bad knee and I have to be top-notch if I'm going to keep doing this, he says to NRK's podcast Bakrommet.
Hareide began his nearly 40-year-long coaching career in Molde in 1985. Since then, he has been national team coach for Norway, Denmark, and Iceland. In Sweden, he was active in Helsingborg, Örgryte, and Malmö FF.
He won the Swedish Championship gold with both Helsingborg and Malmö.
