Mike McCarthy is out as the Dallas Cowboys head coach, and his decision to walk away reportedly surprised Jerry Jones.

As McCarthy and the Cowboys owner continued discussions about a contract extension, McCarthy decided to walk away. Jones was expecting conversations to continue past Monday, according to NFL Network's Jane Slater.

"It's been my understanding that Jerry has talked to Jason (Witten) in recent weeks and I do believe that he was part of a plan that Jerry initially had when he was going to bring back Mike McCarthy," Slater said (h/t Sports Illustrated's Ryan Phillips. "I think the plan there was to make him an heir apparent of sorts. Mike McCarthy sort of surprised him by deciding he wanted to end these conversations, pursue something else."

The Cowboys opted to let McCarthy coach the 2024 season on the final year of his contract rather than give him an extension before the year started. After the season ended last week, the two sides began negotiating what came next. Ultimately, McCarthy didn't like what Dallas had in mind and decided it was time to move on.

Though Jones was reportedly surprised by McCarthy's move, his statement on McCarthy made the separation seem amicable.

"Over the past week, Mike and I had the opportunity to conduct a joint review of all aspects of the past season, our players and staff, and also spent considerable time discussing the road forward for the team. These discussions were thorough and received an appropriate amount of time and depth to cover," Jones' statement said. "Prior to reaching the point of contract negotiations, though, it became mutually clear that it would be better for each of us to head in a different direction. I thank Mike and wish him, his wife Jessica and their family the best. They have been a wonderful part of our community here."

Now, Dallas is looking for its next coach while McCarthy is searching for his next gig.

For the Cowboys, Colorado head coach Deion Sanders has emerged as an early contender for the job, though Philadelphia Eagles offensive coordinator Kellen Moore has also been linked to Dallas.

As for McCarthy, he reportedly has interest from a handful of teams and will interview with the Chicago Bears on Wednesday.