Allardyce was contracted by the Baggies to replace the sacked Slaven Bilic back in December and with a reputation of having never been relegated from the Premier League, the former England manager was tasked with keeping West Brom in the top division.
Despite an upturn in performances that included a remarkable 5-2 victory over Chelsea at Stamford Bridge, West Brom were relegated from the top flight with three games to spare.
West Brom were beaten 3-1 by West Ham United at the Hawthorns on Wednesday and after the game, Allardyce, who signed an 18-month contract when he joined, revealed he will step down from his position after this weekend’s game at Leeds United.
"West Brom made me a generous offer to stay at The Hawthorns that shows the commitment of an ambitious club. After serious consideration I have decided not to accept that offer,” Allardyce said after the defeat to the Hammers.
"If I were to stay and achieve promotion next season the expectation would be for me to continue for at least another season and, sadly, that is not a commitment I feel able to make at this stage of my career.
"I believe the club now needs stability and continuity and this would, in my opinion, best be provided by a young and ambitious manager who can get us back to where we should be as an established Premier League football club."