Frank Rijkaard quit after his Holland team crashed out of Euro 2000 on penalties to Italy.
The coach said he took full responsibility for his country's failure to reach the final of the competition when expectations across the nation were sky-high.
But the Dutch should have won the game in Amsterdam. Frank de Boer and Patrick Kluivert both missed penalties during the initial 90 minutes and the Italians played for a total of 86 minutes with 10 men after the first-half sending off of Gianluca Zambrotta.
Italy defended valiantly to take the game into the first penalty shoot-out of the tournament, which they won 3-1 thanks to misses from de Boer, Jaap Stam and Paul Bosvelt.
Rijkaard said: ''I had one aim and that was to become European champion. We missed that chance and I will pay the consequences for the fact that we didn't achieve what we wanted to achieve.
''It was nothing to do with the match in itself. Just that I had a goal in mind and this generation of football players deserved it. I didn't manage and for me it's a great disappointment.
''From the bottom of my heart I want to thank the players the technical staff for their support. We really had a wonderful team but didn't manage to get to the final."
Italy coach Dino Zoff, meanwhile, was delighted by the resolve shown by his players.
They will face France in Sunday's final, and Zoff said: ''We didn't start the match off on the right foot. Maybe we were feeling the occasion too much but when we went down to 10 men we played much better.
''To reach the final is part of the history of football. For all teams it must be beyond their expectations because it is such a difficult competition.
''We won this battle and now we look forward to the final against a great team.''
It should all have been well over before this game went to penalties.
But the Dutch failed to make their advantage tell - keeper Francesco Toldo saving Frank de Boer's 38th-minute spot-kick and then Kluivert striking the second effort against the post.
For all Holland's patient creativity and attractive passing and movement, Italy produced the complete defensive performance in frustrating their opponents with determination, organisation and no little skill in a fascinating clash of cultures.
So it went to the shoot-out, with Luigi di Biago scoring first before Frank de Boer missed his second penalty of the game - a tame effort straight down the middle.
Gianluca Pessotto nonchalantly scored again for Italy, while Manchester United defender Stam blasted a 'Chris Waddle' effort wildly over the bar and Francesco Totti rubbed in the misery with an outrageously cheeky chipped effort over Edwin van der Sar.
Kluivert at least scored this time around and, while Paolo Maldini could have settled it only to see his effort saved, Bosvelt was then denied and suddenly it was all over for Holland.
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