Kangaroos chairman Ben Buckley confirmed Shaw and the club have come to a mutual decision to part ways immediately.

It comes a week after Buckley announced Shaw had taken an indefinite leave of absence from football.

"Rhyce Shaw has given his all to the club," Buckley said on Thursday.

"He has been an exceptional leader and is a man of the highest integrity.

"His work ethic is unparalleled and we are truly grateful for the time, effort and energy he's put into the role."

An assistant coach at North since the end of 2018, Shaw took on the top job from Brad Scott ahead of round 11, 2019, making an immediate impact as they upset powerhouse Richmond.

The Kangaroos won seven of their last 12 games to end last year, but things never went to plan in 2020.

After winning their first two games, North won just once more as they finished 17th.

Shaw said he was "immensely grateful" to everyone at North Melbourne, including the supporters, for backing him during a challenging season.

"To the players - I will forever cherish the relationships we built and the stories we shared, and I'm grateful for the courage and belief you demonstrated along the journey," he said.

"I'd also like to extend my thanks to members of the AFL media for the care and respect they've shown during this time.

"Despite the challenges of the past year, my passion for football remains.

"The experiences I've had throughout my career developing young footballers to reach their potential has given me the greatest satisfaction and pride, and I hope to have the opportunity to contribute to this great game again in the future.

"For now, however, my focus is on taking time out, and I would ask that my privacy, and that of my family, continue to be respected at this time."

Buckley said North had been preparing for the possibility of Shaw leaving during the past few weeks and had contingency plans in place.

"We will establish a coaching panel with a simple aim: to identify and appoint the best coach available," he said.

"The successful candidate will have the opportunity to continue to build towards the next era of success at Arden St and work with one of the most talented groups of young players in the league."

RHYCE SHAW

Age: 39

Coaching debut: Round 11, 2019 v Richmond

Win-loss record: 10-19

Playing career: Collingwood (94 games), Sydney (143)

Australian Associated Press