Phelan joined Norwich on 20th November as first team coach under then manager Neil Adams. There were suggestions at the time on the message board that it could signal the end for Adams with Phelan likely to be the next manager.
That was heightened recently when Adams stood down from the post with Phelan immediately installed as the bookies favourite to be the next manager, but that didn't happen and last week Norwich confirmed the appointment of Hamilton boss Alex Neil who immediately confirmed he would be bringing in his number two Frankie McAvoy.
Phelan and Gary Holt had been looking after the first team during the interim period and it was thought that both would stay at the club, that was until Phelan informed the club that he wanted to leave.
It is thought that he could be set to become the new assistant manager at Hull following the departure of Steve Agnew who returned to Middlesbrough just before Christmas.