According to a statement released by the team, they were looking to take the franchise in a new direction with a new head coach but wanted to keep Dravid around and even offered him a broader position within the team's setup.
However, Dravid was not interested in the new role offered and they instead agreed to go their separate ways despite the fact that he signed a multi-year contract when joining the team in 2024.
"Head coach Rahul Dravid will conclude his tenure with the franchise ahead of IPL 2026," the statement said.
"Rahul has been central to the Royals' journey for many years. His leadership has influenced a generation of players, instilled strong values within the squad, and left an indelible mark on the culture of the franchise.
"As part of the franchise structural review, Rahul had been offered a broader position at the franchise, but has chosen not to take this. The Rajasthan Royals, its players, and millions of fans worldwide extend heartfelt thanks to Rahul for his remarkable service to the franchise."
Dravid presided over the team's worst performance in the IPL since 2021 after guiding them to just four wins out of 14 games in the 2025 season.
It leaves the team, and the head coach that comes in to replace Dravid, in an interesting position as the former India batter was central to the team's auction strategy as they retained several players from last season, including Yashasvi Jaiswal, Dhruv Jurel, Riyan Parag and Shimron Hetmyer.
Team captain Sanju Samson was also retained but rumours have begun to emerge that he has since asked to be released from the team ahead of the new season.