irishrugby.ie 06.Feb.2014Getty Images
Rob Penney joined the Munster set-up at the start of the 2012/13 season and in his first year guided the squad to the semi-final stage of the Heineken Cup and a sixth place finish in the RaboDirect PRO12.
This season Munster have recorded 15 wins out of 18 games and are currently top of the PRO12 and through to quarter-finals of the Heineken Cup for the fifteenth time in the competition's history.
Penney, who initially negotiated a two-year contract with the option for a third year, has opted to decline the extension offer.
The terms and conditions of this extension had been agreed by the Munster Professional Games Committee and the IRFU, but the New Zealander has since attracted the interest of another club and there are terms on offer that are in line with Rob's long-term needs.
Fellow Kiwi and backs coach Simon Mannix, who joined Munster at the same time as Penney, will also leave at the end of this season.
Commenting on the departures, Munster Rugby Chief Executive Garrett Fitzgerald said: "When we reach the end of the season Rob will leave with our thanks and best wishes for the future.
"Rob has been a very positive influence on this Munster squad and management and we are disappointed to see him go as we had hoped that he would fulfil his third season.
"In developing the squad he has highlighted the strength and depth of the Munster panel, with the competition for places as high as ever.
To read more regarding the multiple ITM Cup Premiership winning coaches departure from Munster, visit Ireland Rugby.