Torrent, 57, topped the Eastern Conference with NYCFC this year but there has been uncertainty about his future since the defeat to Toronto FC in the playoffs in October.
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Speaking after that game, he hinted that he would not remain in charge for next season, although no decision had been made at that time.
Sources have now told ESPN FC that Torrent has decided to bring an end to his time in charge of NYCFC. He will communicate his intentions to the club's owners in the coming days.
The same sources said that he has drawn interest from a number of other MLS clubs and could choose to remain in North America. The same sources deemed his experience "extraordinary." He also has options in the Middle East to carry on his coaching career.
The Catalan coach took over at Yankee Stadium in 2018 following more than a decade on Pep Guardiola's staff at Barcelona, Bayern Munich and Manchester City. He replaced Patrick Vieira.
He led NYCFC -- who, like Man City, are owned by the City Football Group -- to the Eastern Conference in 2019 playing an attractive brand of football. However, they fell at the first hurdle in the playoffs.
"Believe me, it's not important," he told reporters after the Toronto defeat when asked if he would still be in charge for the 2020 campaign.
"They are ready for another coach, because they are a group, a big group. They are ready. But don't worry. If Patrick is not here, it's Dome. If Dome is not here, it's another coach."
Toronto went on to beat Atlanta United in the Conference Finals and will meet Seattle Sounders for the MLS Cup on Nov. 10 at CenturyLink Field.
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