The first indication Ivan Cleary's days at Penrith were finished came over a couple of quiet beers with Phil Gould in early August.

The Panthers had just returned from Darwin, where they had suffered a 10-4 loss to Parramatta.

Gould, the Panthers general manager, sat Cleary down. He told his coach he looked tired. Maybe it was time for a year off. Maybe it was time to leave Penrith.

"I had concern for Ivan midway through the year," Gould told Fairfax Media. "I felt he was looking tired and I had the conversation with him, and also his wife. He came back a week later and he said he was going to battle on. I just haven't felt things were going to be any different or better."

So, at 4pm on Monday, Gould pulled the trigger, telling Cleary his contract had been terminated in the best interests of the team, which this year narrowly avoided the wooden spoon with a final-round victory over hapless Newcastle.

Former Broncos coach Anthony Griffin is set to be ushered in as his replacement, although the deal is not yet finalised. It is no secret Gould has a high opinion of Griffin, believing the foundations for the Broncos' success this season under Wayne Bennett had already been laid. Penrith are not speaking to another coach.

Cleary had a year to run on his deal. Gould said the decision to terminate the contract followed an extensive review of the club, which battled an unprecedented injury crisis in 2015.

"The biggest factor for me was that Ivan is off contract at the end of 2016," Gould said. "At this stage, I couldn't see myself extending that contract. I just thought I was setting Ivan and the club up for a difficult year if he coached again. We had speculation of what his future might be if it didn't go his way. It was best to make the change now. I had to make it. It was the right decision for Ivan, and for the club. The pressure our club was put under this year with the number of injuries also shone a light on some other aspects of our people and our club. Quite often, these things are exposed under pressure."

There has been much speculation about a souring relationship between Gould and Cleary for months, not least since the ugly departure of former assistant coach Trent Barrett when he signed on as Manly coach.

In truth, the end of a coach's time at any club is the result of several factors. Gould has known Cleary for decades, having spent time together at the Roosters in the 1990s when Gould was coach and Cleary a sharp-shooting fullback and centre. "He's shocked and disappointed. It's disappointing for me, too. We've known each other a long time. But it's a big call, he's a great coach, I'm sure he'll get another job."

Cleary did not return calls on Monday night. It's an unfortunate end to his time at Penrith, given the level of optimism when he arrived after the 2011 season as the replacement for Matthew Elliott. Alongside Gould and leagues club boss Warren Wilson, Cleary was one of the key planks in salvaging the financially crippled Panthers – and also thwarting the arrival of the AFL-funded Greater Western Sydney Giants in Sydney's west.

"The game's given me everything," Clearly said in an interview in 2011. "It's a huge area out here, and it's important everyone does their bit in fostering the game. Not only do I want to, but I feel it's my responsibility."

Having moved on the likes of captain Luke Lewis and international centre Michael Jennings for cultural and salary cap reasons, Penrith stunned everyone last year when they came within a preliminary final victory of making the grand final. But a score of serious injuries this season, including those to superstar fullback Matt Moylan, halves Peter Wallace and Jamie Soward, veteran prop Brent Kite, hooker James Segeyaro and troubled centre Jamal Idris, helped send Penrith to the ranks of the also-rans.

There is lingering doubt about the future of Soward, who has denied he is being shopped to other clubs in the twilight of his career.

Cleary as coach

2004 Coaches Sydney Roosters to win NSWRL Premier League
2005 Rejoins the NZ Warriors as assistant coach
2006 Replaces Tony Kemp as head coach before the start of the season
2008 Coaches Warriors to preliminary final from 8th place
2009 Warriors finish 14th under Cleary
2010 Warriors return to finals, finishing fifth  
2011 Signed by Penrith to three-year deal starting in 2012
2011 Warriors reach NRL grand final, losing 24-10 to Manly
2012 Panthers finish 15th on the NRL ladder
2013 Panthers finish 10th
2014 Panthers finish 4th, reach preliminary final
2015 Panthers finish 11th