The Bulldogs confirmed on Tuesday earlier reports that Pay was stepping away from the role after three years leading the club.

Club officials had said a decision would be made about the coaching role within 48 hours on Monday after the Bulldogs slumped to the bottom of the table following a sound loss to the Broncos.

However, Pay took the news into his own hands, meeting with players Tuesday morning to confirm he would quit the club.

Bulldogs CEO Andrew Hill told NRL.com that both parties had agreed it was in the best interests of the individual and club to part ways.

"These decisions are always tough, particularly when they involve someone who has been part of the Bulldogs family for a long time," Hill said.

"The fact is though that the club and Dean have decided that we need to move in a different direction to take the team forward and Dean was in agreement that now was the right time for both parties to part ways.

"We did not rush this decision and have taken our time to look at what was best for the club in regard to success moving forward," Hill told the NRL website.

The Bulldogs were already on the back foot after last week the club's lock and Tathra export Adam Elliott was sidelined for the rest of the season with a dislocated shoulder requiring surgery.

However, the club now has turned to Steve Georgallis as interim head coach for the Bulldogs until arrangements can be made.

The club were looking at their options following a horror start to the season that has them with just one tick in the right column after nine rounds, with the embarrassing loss to the Broncos appearing to be the final straw for club officials.

While the departure comes on relatively sour terms, Pay acknowledged the club in a brief send off statement.

"I'd like to thank the Bulldogs for the opportunity to be the Head Coach at a club that has always meant so much to me," he said.

It is understood the club could be in talks with Panthers assistant coach Trent Barrett to fill the boots at Belmore.