The Edmonton Oilers announced Thursday that Tom Renney would not be returning as head coach for the team.

The announcement that General Manager Steve Tambellini would not be renewing Renney's contract was made via Twitter.

It's a move Tambellini said is the right one as the team enters a new phase.

"We're just trying to find things and how do we get better. We need to get better as an organization, as a management staff, coaching staff, better as players," Tambellini told reporters at a news conference at Rexall Place.

"We just want to prepare us going into a phase here where we think we need to get to a different level of competing for playoff spots."

Tambellini informed Renney of his decision in British Columbia earlier Thursday.

He said Renney was a good man and a good coach.

"He's done a good job for us."

Tambellini did not say who would replace Renney but said there are "a few people" the organization is interested in. He said he hopes to have a new head coach in place before the draft.

Tambellini did not give many details about why Renney was being let go, just that it was the "right thing" for the team to do to move forward.

"We have to move ourselves up in standings to be able to compete with good teams," he said.

"Expectations will increase, as they should," he said.

Renney joined the Oilers on June 22, 2010, becoming the Edmonton Oilers 10th coach. Renney led the Oilers to a 25-45-12 record in his first season with the club.

Renney had previously spent nine seasons with the New York Rangers - serving as head coach from 2004 through 2008 and the Vancouver Canucks for a single season (1996-1997).