"After meeting with the president, I have decided not to continue," Gracia told a news conference on Wednesday.
"I would like to stay here my whole life but circumstances dictate that it would not be positive for the club, or for me, if I stayed."
Valladolid said on their website (www.realvalladolid.es) that Martinez's contract had contained a clause that meant he would automatically leave if the club were relegated.
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