The 40-year-old manager, who had been linked with a move to Fulham, stated he will not be taking another job immediately.
McKenna is stepping away from football to take a break and dedicate time to his family after five intense years in the role.
He expressed a mix of gratitude, pride, sadness, and contentment, calling it the right time to step aside after achieving a second promotion.
Ipswich Town chairman Mark Ashton praised McKenna’s “simply incredible” achievement of three promotions in four seasons, acknowledging his significant impact on the club.