Troy Chaplin will take the reins as interim coach for the rest of the season.
Green said the time was right for change at the Demons, conceding the players would be affected.
“They will be hurting,” said Greeen, a former Melbourne player. “I was when I lost a senior coach. I know how they are feeling.“
Goodwin said last week he and the board were aligned.
“Obviously, I got that wrong,” he admitted on Tuesday.
“Right now we are in a transition phase.”
Green also thanked Goodwin in a statement released late on Tuesday morning.
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“Goody should be incredibly proud of what he’s achieved at the Melbourne Football Club,” Green said.
“To take a group of players and help shape them into a premiership team is something only four other AFL coaches have achieved within the history of the club.
“He has given absolutely everything, not just as a coach, but as a person and we are extremely grateful for his contribution to the red and blue.
“On behalf of the entire club, I want to thank Simon, his wife Kris and their family for everything they have given to Melbourne. We wish them nothing but the best for the future.
“While decisions like this are never easy, the board and I believe that now is the right time for a new voice to lead our AFL playing group and program forward.”
Green and Goodwin will address the media at 1pm on Tuesday.
A searching review of the football department last year did not lead to significant personnel change, but the club had vowed that after no tangible on-field improvement, this year there would be significant action.
The Demons were mindful of the potential availability of experienced former senior coaches in Adam Simpson, John Longmire and Nathan Buckley when contemplating Goodwin’s future.
Goodwin, one of only four Melbourne premiership coaches, showed no signs that he was under pressure to keep his job on Saturday night at Marvel Stadium.
“I’m the coach of the Melbourne footy club,” Goodwin said after his side’s 83-point thumping of West Coast Eagles. “I’m proud to be able to do that.
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“Clearly, I’ve got a clear plan. I’m well-supported by the board in terms of where we’re heading and what we’re trying to achieve.
“They also understand that sometimes, when you’re building something, that challenge will occur, and what happens is, you ride the challenge, you have clarity, and you keep building.”
Goodwin said he had never considered his own future as they navigated the devastating fallout of the St Kilda loss in round 20.
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“I’ve said all along, it’s not about me, it’s about the footy team and the footy club,” Goodwin said.
“We think we’ve been building something throughout the year, you know, with our outcome, and sometimes that can be really tough for our supporters.
“It can be tough for people internally, but I’m really clear about what we’re building, what we’re trying to build, and what we’re trying to transition into.”
The former Adelaide champion player led the Demons to a premiership four years ago, breaking a 57-year-drought, one of the longest in the AFL at the time.
The move ensures the Demons will next season have a new senior coach, president and chief executive in a sweeping change to leadership at the club.
Garry Lyon (right) was shocked by Goodwin’s departure.Credit: AFL Photos via Getty Images
Despite his deep connections to the club Lyon said he had no inkling that the board would move on Goodwin before the end of the season.
“I’m stunned, shocked, totally shocked. Absolutely, just shocked, I can’t get my head around it,” Lyon said on SEN.
“I thought there would be a long review at the end of this year and then determine whether he could coach out the final year of his contract,” Lyon added.
He said Goodwin would always hold a special place in Demon hearts for coaching Melbourne to the 2021 flag, which was played at Optus Stadium in Perth while Victoria was in lockdown.
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“Premiership coaches are rare at Melbourne, he’s one of four, he will be a hero of this football club forever and a day, but that obviously doesn’t guarantee tenure,” Lyon said.
“This is a massive call … He won’t be coaching a farewell game, that’s something I can promise you.
“I had no heads up on this whatsoever. Absolutely just shocked, I can’t get my head around it.”
With Danny Russell
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