The former Manchester United and England defender’s deal would have seen him take charge of the Lionesses’ European championship campaign on home soil next year.
However, the reorganisation of the football calendar due to coronavirus means the women’s Euros is expected to be moved to 2022 by UEFA this week.
Neville is also now unlikely to take charge of the Great Britain team at next year’s Olympics, with the FA keen for his successor to get tournament experience before the Euros.
After taking charge in January 2018, Neville quickly made a big impact as England won the high-profile SheBelieves Cup for the first time and pushed world champions the United States all the way before losing a pulsating World Cup semi-final 2-1 last year.
However, England’s form has unravelled since, with a run of seven defeats in 11 games leaving even Neville himself questioning whether he was the right man to take them forward.