Who should be the new Warriors coach?
McClennan, appointed Warriors head coach last August, was 'very disappointed' his tenure hadn't produced the results he expected.
"It was exciting coming into this job with the Vodafone Warriors and everyone has worked so hard to try to get the performances and results we all expected of ourselves,'' he said.
"No one is more disappointed than me that things haven't worked out. I gave it my best shot. I've put my heart and soul into this and everyone has been terrific with their efforts.
"I've always said I was driving the bus and I accept accountability. It stops with me.
"For whatever reason, we haven't made the progress we all hoped for.
"I'm thankful for the opportunity the Vodafone Warriors gave me and wish the club all the best for the future.''
McClennan, 49, coached New Zealand to Tri-Nations success in 2005 before finishing with a 7-9 record with the Kiwis.
He then guided Leeds to back to back Super League titles in 2008 and 2009. He was working as football development manager for Auckland Rugby League before being named as Ivan Cleary's replacement last year.
Scurrah said: "We know how disappointed Brian is and we're equally disappointed for him and for everyone who is associated with the Vodafone Warriors.
"Brian is a person of wonderful character and integrity, he's so passionate about rugby league and he's put in an exceptional amount of time and effort into trying to turn the team's fortunes around.
"He brought a lot of energy to the club and made a fantastic contribution off the field with his interaction with sponsors, members and in the community.
"We wish Brian and his family all the best for the future and thank him for his efforts.''
Scurrah said the club now had the opportunity to rebuild.
"Confidence is understandably low at a time like this following the results on the field from our NRL side,'' he said.
"However, the club is in strong shape in all other areas. The Vodafone Junior Warriors are again performing well in the NYC while we've had a season of significant growth in terms of our crowd numbers, sponsorship revenue and membership numbers. We've also strengthened and developed our work in the community.
"Our resolve now is to rebuild, as we had to after a poor season in 2009. We're confident we can recover quickly.''
Scurrah said the club would now put a process in place to consider options for a new head coach.
TIMELINE - BLUEY'S TIME AT THE WARRIORS
August 1, 2011
McClennan new Warriors coach
February 14, 2012
McClennan aiming high
March 8
Can Brian McClennan take the Warriors all the way?
April 10
McClennan confident turnaround is coming
July 30
Warriors back McClennan
August 12
Damage control for Warriors coach McClennan
August 16
McClennan hopes to remain in charge
August 17
Axe hanging over coach McClennan
August 20
Warriors' coach escapes axe - for now