Hodgson resigns as England's boss after humiliating defeat.

Roy Hodgson has resigned as England manager after his team were beaten 2-1 by Iceland to seal their humiliating exit from Euro 2016.

The embarrassing defeat to the tournament minnows was one of the lowest points in the nation's footballing history as goals from Ragnar Sigurdsson and Kolbeinn Sigthorsson meant it was a night of yet more abject failure for the dejected Three Lions.

It left Hodgson, who was England's highest-paid manager, earning £3.5million a year on his bumper FA contract, unable to continue as manager. Iceland manager Lars Lagerback, in contrast to Hodgson, is paid just £346,000 a year.

The 68-year-old quit in the immediate aftermath of the post-match press conference after the Iceland defeat

Hodgson's team were humiliated 2-1 by Iceland on Monday night on an evening of abject failure in France

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Hodgson, clearly dejected at the performance his team had put in, announced his resignation immediately after the final whistle.

The 68-year-old entered the post-match press conference and gave a short statement before exiting the media circus.  

Ray Lewington and Gary Neville, Hodgson's assistants with England, will also leave their positions with immediate effect. 

'I'm extremely disappointed, of course, about tonight's result and ultimately our exit from the competition,' Hodgson said. 

'We haven't progressed as far as I thought we were capable of, and that's obviously not acceptable. I am actually proud of the work that my coaching staff and I have achieved in our time at the helm with England.' 

 Hodgson realises his time with England is all but over as the Three Lions are humiliated by minnows Iceland

Captain Wayne Rooney receives Hodgson's congratulations despite his team going down to a 2-1 defeat

Joe Hart and the rest of the England team reflect on the defeat which has ultimately cost Hodgson his job

Hodgson added: 'The transition from a squad whose average was 30 to now being the youngest in the tournament is both remarkable and exciting for the future of English football.

'I would have loved to stay on for another two years, however I am pragmatic and know that we are in the results business.

'My contract was always up after the Euros so now is the time for someone else to oversee the progress of this young, hungry and extremely talented group of players.

'They've been fantastic and they have done everything that has been asked of them.

'When I arrived I was told that players didn't turn up to play for their country or that they pull out at the last minute. But I have not seen any of that.

'These players love to play for their country and their commitment has been unquestioned.

'Ray and Gary have asked me to speak on their behalf. They arrived with me as part of my coaching team and they'll leave with me.

'I'd like to thank them for their dedicated support and for the major part they've played in our team preparation.

'Finally I'd like to thank all the support staff, players, the FA and of course the fans.

'It's been a fantastic journey these four years and it's one I'll look back on or remember with pride.

'Finally I'd like to thank you, the media, for the support that you've given me over the four years.

'I am sorry it's had to end this way with another exit from the tournament but these things happen. 

'All I can do is wish everybody all the very best and hope that you will still be able to see an England team in a final of a major tournament fairly soon. 

'We've been unable to deliver. Thank you very much.' 

England were truly awful against Iceland, a country with a total population equivalent to the city of Leicester

Hodgson's England career is now at an end after he failed to secure big tournament success once again

The Football Association insisted Hodgson had composed his resignation statement in the dressing room after the match, rather than having prepared his exit speech before the Iceland result.

But his quitting of the biggest job in English football means the FA must start again in the wake of yet more tournament failure.

A statement released by the FA following their team's disappointment read: 'Like the nation, we are disappointed to lose this evening and that our run in Euro 2016 has come to a premature end. 

'We had high hopes of progressing through to the latter stages of the competition and accept that we have not met our own expectations or those of the country.

'We back Roy Hodgson’s decision to step down as England manager and will discuss the next steps imminently. For now, we congratulate Iceland for reaching the quarter final and wish them well against France at the weekend.

'Finally, our sincere thanks go to the travelling fans for their incredible support tonight and to everyone back home for getting behind the team.'  

Hodgson's departure - alongside that of assistants Lewington and Neville - is the icing on the cake of yet another disastrous few weeks for the national side. 

Failure to win their group at Euro 2016 saw England paired with Iceland in the last 16 but even that proved too much for captain Wayne Rooney and his team of abject disappointments. 

Rooney had opened the scoring with an early penalty but Sigurdsson soon equalised after some shocking England defending from a throw. 

Sigthorsson then put the smallest team in the tournament, a country with a population of the size of Leicester, ahead for an advantage they were to eventually hold on to. 

England huffed and puffed as they tried to get back into the game but they never really looked like scoring in what was a woeful team performance. 

Iceland looked the more organised side as England struggled to string five-yard passes together. 

The result was a night of ignominy and when the dust settles, there will be serious questions to be answered for all of those involved.