Geoff Toovey has paid the price for Glenn Stewart's departure from Manly despite the fact the veteran back-rower had previously asked the coach for a release from the club.

Sea Eagles chairman Scott Penn revealed the "critical decision" not to offer Stewart a contract extension at the end of last season was one of the factors in Toovey being punted with a year remaining on his contract.

"There were decisions made last year [in regards to retention] that led to us performing not as we should have in the finals," Penn said at a press conference at Narrabeen on Wednesday. "And [the Stewart decision] was one of them."

While it has been widely reported that Stewart - who eventually signed with South Sydney - never wanted to leave Brookvale, Fairfax Media can reveal he sought permission to negotiate with other clubs while still under contract in 2013. The Sea Eagles, experiencing salary cap pressures at the time due to a raft of back-ended contracts, granted the request and Parramatta expressed interest in signing him.

However, the negotiations came to nought after then-Eels coach Ricky Stuart shifted to Canberra. Stewart subsequently agitated for a contract extension but, with Manly already over the salary cap to the tune of almost $300,000 at the time and officials mindful funds would be required when their star halves came onto the open market, didn't table an offer.

"That hasn't necessarily been the sole factor [in Toovey's demise], but that certainly did disrupt the playing group at that point in time," Penn said.

Asked if he felt Stewart's exit fast tracked his own demise, Toovey said: "I am sure it is all part of it. It's a decision that has been made. I have to accept it and move on. Lots of things happen in rugby league. It's a funny game and we just need to gel as best we can and get the results."

Toovey was diplomatic when grilled about his impending departure from a club to which he has devoted three decades. The Manly life member said a horror injury toll and the signing saga surrounding halves Daly Cherry-Evans and Kieran Foran were part of a "perfect storm" that conspired against the side. However, he refused to use speculation over his own future as an excuse for a string of losses that could result in Manly missing the finals for the first time in 11 years.

Toovey will be paid out his base wage of $350,000 for next year as part of his severance, although he won't be entitled to the bonus triggers - worth potentially up to $150,000 - after both parties agreed to a payout.

After beating the Warriors last weekend, Toovey could yet lead the Sea Eagles to an unlikely play-off appearance, although his side would likely need to win all their remaining matches. "All I can say is the club has made a decision, I have to live with that, we have come to an amicable agreement," Toovey said. "We just have to win matches, get to the semis and hopefully win the comp."

Penn said Toovey had been put on notice in March, while Sea Eagles CEO Joe Kelly publicly declared Toovey would fulfil his tenure the following month. Kelly said subsequent results were the reason for his backflip.

"I think things change and that was in round four of the competition leading into round five," Kelly said.

"At that point in time I certainly said those comments. At the end of the day, as Scott has already alluded to, we are a business, a results-driven organisation. Certainly the results haven't turned around since that point in time.

"Ultimately that was a comment made in a point in time and things have changed and hence we're moving in a new direction."

Stewart's brother, fullback Brett, refused to buy into what effect his sibling's exit played in Toovey's demise.

"I have been here 13 years and I don't think there has been a normal week yet," Stewart said. "This year has probably been a little more challenging than most. But when our backs are against the wall we seem to go pretty good."