Juan Carlos Osorio has accepted the chance to take the vacant head coach role with Mexico, according to Sao Paulo's president.
Osorio said on Monday that he would endeavour to announce a decision over his future within 48 hours as he initially sought to stay in charge of Sao Paulo until the Copa do Brasil final in November.
However, club president Carlos Miguel Aidar has said that the 53-year-old has elected to leave the Brasileirao side and take up the post with Mexico on a full-time basis.
"He confirmed the decision to leave in order to lead the Mexico national team during the qualifiers for the next World Cup," said Aidar, via a statement released through the club's website.
"I deeply regret this decision, as he was doing a good job. I wish him luck."
Aidar also confirmed that he has asked the entire Sao Paulo board of directors to step down in order to end "the political in-fighting that adds nothing to our club".
Osorio himself had rejected suggestions he was moving for the money, insisting he was following "a dream" by taking charge of Mexico.
"Sincerely, it is a tough decision because we are talking a great club, one of the greatest clubs in South America, but then we are also talking about a national team with great potential," he said.
"This has nothing to do with money. There are no agents involved. This is a personal and family decision."
Mexico have been looking for a new head coach since the departure of Miguel Herrera at the end of July following an altercation with a journalist at an American airport.
Former Borussia Dortmund boss Jurgen Klopp rejected the role, according to the Mexican Football Federation, with the 48-year-old now the favourite for the vacant manager's post at Liverpool.
