Four years after stepping behind the bench, hockey legend Wayne Gretzky resigned as head coach and director of hockey operations for the bankrupt and underachieving Phoenix Coyotes.

"This was a difficult decision that I've thought long and hard about," said Gretzky, who is also the team's managing partner and a minority owner, in a statement on his website on Thursday.

He said he hoped a resolution would be reached in the "ownership situation" of the beleaguered Coyotes, but the decision was taking longer than expected.

"Since both remaining bidders have made it clear that I don't fit into their future plans, I approached General Manager Don Maloney and suggested he begin looking for someone to replace me as coach," said Gretzky.

"Don has worked hard and explored many options. I think he has made an excellent choice, and so now it's time for me to step aside."

Hours later, the Coyotes named former Dallas Stars coach Dave Tippett as the team's new head coach, signing him to a four-year deal. Terms weren't announced.

Tippett, 48, went 271-162-59 in his six seasons with the Stars.

Maloney said he'd been pursuing Tippett since June, when he first got an inkling Gretzky might not be back as coach.

Gretzky, 48, has stayed away from the Coyotes and has been absent from the team's training camp as the bankruptcy court battle wages on between the team, the National Hockey League and Canadian billionaire Jim Balsillie.

Eyebrows were first raised and Gretzky's status with the team came into question when he was absent on stage during June's NHL draft. He wasn't present when Coyotes scouts and executives selected Oliver Ekman-Larsson sixth overall.

The "Great One" was brought onto the organization as managing partner in February 2001, and became coach in Aug. 2005. There were high hopes his presence and leadership would turn the hockey team around. But in the four seasons under his helm, the young Coyotes team never made it into the playoffs.

Gretzky, who is due to make US$8.5 million this season, compiled a 143-161-24 record as coach.

When his compensation arrangement details surfaced, eyebrows raised around the hockey world.

"It's devastating for him," Maloney said earlier this month. "He's the nicest man in the world, he'll do anything for anybody. He's almost been painted as a bad guy in this scenario. A portion of his compensation is coaching, it's not the entire compensation -- he's the managing partner."

Despite the departure, NHL Commissioner Gary Bettman tried to keep the door open to Gretzky's continued involvement with the Coyotes in some capacity.

"As always, Wayne placed the welfare of the team ahead of his own in making this extremely difficult decision," Bettman said in a statement. "While the Coyotes have not had the degree of on-ice success that always has been Wayne's objective, there can be no question he has played a vital role in the youth movement that has positioned the Coyotes for success in the future.

"We have nothing but admiration for all that Wayne has done for the game, and are extremely hopeful there will be a prominent role for Wayne with the Coyotes if the league's bid for the club is successful. We look forward to his continued involvement."

A spokesperson for Balsillie said the group is only focused on buying the team. Any personnel decisions would have to wait until that issue is resolved, it said.

The Coyotes issued a statement thanking Gretzky for his "dedicated service" since joining the organization.

"Wayne is often credited with the rise of hockey in southern and western markets," it said. "He was proud to represent one of those very franchises, and the Coyotes were fortunate to have him. Although his time with the Coyotes has come to an end, the examples he set and the legacy he leaves will undoubtedly have a lasting impact on everyone associated with the franchise."

With files from The Associated Press