Barrow are on the lookout for a new manager again after contract talks with Phil Brown broke down.
Brown had taken temporary charge for the final nine games of the League Two campaign and played his part in ensuring the club stayed in the EFL by avoiding relegation.
However, the club have said negotiations over him taking the role on a full-time basis have proved unsuccessful and they will now move in a different direction.
Chairman Paul Hornby said: “I would like to place on record my thanks to Phil and to Neil McDonald for their efforts since coming into the club.
“Retaining our EFL status was the number one priority when they arrived in March, and we are grateful for the part that Phil and Neil played in that. We wish them both well for the future.”
Brown was brought in to replace Mark Cooper after the Bluebirds were languishing in the bottom four, and at one point looked in danger of being overhauled by Oldham.
