A statement issued by the Minstermen read: "The decision was taken by the board of directors to benefit the long-term financial position of the club and is considered to be in the best interests of York City Football Club.
"The board of directors is proposing to honour the contracts of Terry Dolan and Adie Shaw and have stated the club is not in a position to make any form of immediate financial settlement to bring their employment to an end before the expiry of their notice periods."
Despite a season of off the field crisis at Bootham Crescent, when the club's existence was threatened on more than one occasion, Dolan lead the club to 10th place in the league table only missing out on the play-offs after an end of season slump.