MICHAEL HAGAN put his family and health first when he quit as Parramatta coach, costing himself an estimated $300,000 in the process. That is the amount Hagan was understood to be earning annually from his three-year deal with the Eels. His contract had a season left to run, but the fact Hagan chose to resign means he won't be paid out for what was to be his final year.

Hagan, 44, announced his decision yesterday, citing family and health reasons and admitting he had his lost his passion for coaching. The fact he wasn't looking forward to directing another pre-season preparation - the Eels are due to start training again on Monday - convinced Hagan that it was time to give it away. And it will be for good, with Hagan declaring he has no plans to coach again.

"I think Warren Ryan referred to the fact you get cured of coaching at some point, and I think I'm nearly cured of it," he said. "The process is pretty full on and the game's not getting any easier for the players or the coaches. I'm happy to leave on my terms and I'd rather it end that way than in other ways."

Hagan could have seen out his contract but he chose to get out rather than continue. He said money had been a consideration, but added: "That's not the sole reason I coach. It's a bit like when you play, when you know as a player you've had enough and you've got to make that decision. I think that's where I am at the moment."

The Eels endured the season from hell this year, finishing 11th after making it to the grand-final qualifier last year. But Hagan said he was convinced he would have made the same decision had Parramatta qualified for the finals and done well in them.

He said the job meant he had spent too much time away from his wife, Sue, and their three teenaged daughters, who have continued to live in Newcastle. He wanted to turn that around, with his twin girls - 17-year-olds Melissa and Lauren - in year 12 at high school next year and 14-year-old Danielle going to year 10.

Hagan was also shaken by a health scare in August, when he was hospitalised with a case of vertigo. That, and a back problem, which is aggravated by driving from Sydney to Newcastle and back a couple of times a week and needs treatment, were also considerations.

"When I got crook at the end of last year, I was really struggling with the demands the game puts on you," Hagan said. "If you're head coach of a club like Parramatta, there is a lot of pressure and a lot of expectation."

Hagan said he had been tossing up his future for six months. He looked relieved to have reached the end. Hagan told Parramatta chief executive Denis Fitzgerald of his decision last Thursday, and Fitzgerald informed the club's board at their scheduled meeting on Monday. Hagan said he planned to have a break before looking at alternative career paths.

"I just don't have the energy and enthusiasm that you need to do this role and I think it's only fair that I make that decision now, so the club can make the necessary appointment for next year and get on with the business of winning football games," Hagan said.

"If you're not excited about the game and being in games … I think you are bound to move on and let someone else jump in that is passionate and wants to coach at the highest level. I don't think I've got that passion left in me at the moment. It's the right time to step aside."

Fitzgerald said he was sympathetic towards Hagan's family and health situations, and appreciated the departing coach being honest about having lost the desire to coach. "It comes as a surprise to the club, but we understand the reasoning behind the decision," Fitzgerald said.