Gradi will instead become head of the club’s academy and will hand over control of first-team affairs at the club to his assistant Steve Davis.
A club statement read: “The Football and Premier Leagues have published plans aimed at furthering developing youth development programmes at clubs.
“These plans will have significant impacts on clubs both financially and organisationally.
“The Crewe Alexandra board believes that youth development should still be a major investment for the club and intends to exploit any opportunities arising from such changes, despite the challenges it will face.
“As a result, Dario Gradi will hand over first-team manager responsibilities to Steve Davis, and concentrate on the future development and direction of the academy.”
