Poland went into the game knowing only a victory would see them through to the quarter-finals following draws with Greece and Russia in their opening two Group A matches.
But despite the passionate support in Wroclaw, Smuda's side were unable to make the breakthrough when on top in the first half and fell away after the break, with Petr Jiracek scoring the only goal of the game in the 72nd minute.
"This is 100 per cent the end of the road. My contract runs out at the end of Euro 2012. Thanks guys," Smuda told Poland's public TVP broadcaster in an emotional interview.
"We did our best. Unfortunately, we had a lot of missed passes. In the second period, we had to fight non-stop to get the ball back," added Smuda,
The 63-year-old took charge of Poland in October 2009 and the country must now begin the process of appointing a new manager.
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