Pybus, 48, took over from Australian Stuart Law as Bangladesh coach last May.
Dhaka: Richard Pybus has stepped down as Bangladesh head coach after he was unable to agree terms on a formal contract, the Bangladesh Cricket Board (BCB) said on Wednesday.
"We have received an email from the agent of Mr Pybus which stated that he is unwilling to continue as our head coach," BCB president Nazmul Hasan told a news conference.
Pybus, 48, who was born in Newcastle, England, had two stints as Pakistan coach. He took over from Australian Stuart Law as Bangladesh coach last May.
The BCB said no formal contract had been signed with Pybus because they could not agree on his holiday allowance. "He was looking for more time to be with his family," said Nazmul. "But we have a structure for all foreign coaches and we cannot go beyond that."
Pybus said the BCB has had initially agreed to allow him return home between tours but the agreement had never been made explicit in the contract they had presented to him. "I tried repeatedly to resolve it. I initiated more than six meetings and discussions to make the terms of the contract negotiation transparent and offer solutions but to no avail. That is why I have decided I will not go back," Pybus told the Cricinfo.
Bowling coach Shane Jorgensen has been appointed as interim coach for the forthcoming home series against West Indies starting next month.