Gerardo Pelusso resigned as Paraguayan national coach on Monday after they saw their chances of qualifying for the 2014 World Cup finals all but ended last Friday.
The 59-year-old Uruguayan – who as a coach has won five national league titles spread over three South American countries – took the decision after Paraguay lost 2-1 at home to Chile.
He has only been in the post since 2012.
Paraguay, who are bottom of the table on eight points with four games remaining but retain a slim mathematical chance of still qualifying, have qualified for the past four World Cups, losing to eventual champions Spain in the 2010 quarter-final.
They also reached the 2011 Copa America final where they lost to Uruguay.