St Leonards have sacked manager Mickey Taylor and replaced him with Terry White, assistant manager of local rivals Hastings Town.
Saints chairman Jon Cornelius says he wants a locally-based man to run the team.
Taylor, 53, said: "I was told I was sacked because the team had lost its local identity. As far as I am concerned that is not in the dictionary of excuses for firing a manager.
"It hasn't effected Billy Smith at Crawley, who travels in from Tooting and it certainly hasn't stopped Eriksson becoming boss of England.
"I'm very disappointed and quite upset. It goes to show there is no place for loyalty. I've given everything for that football club.
"It is a poor excuse to bring Terry White to the football club. I don't know why it has taken them six months to figure out that I am not local," said Croydon-based Taylor.
Saints chief Cornelius admitted the decision to dismiss Taylor was the "most difficult decision he has faced since becoming chairman."
He said: "We decided to release Mickey not because of his performance as a manager, because he has done a good job, but we need a local manager and a local team. That's the message I have been getting from supporters.
"We needed a local character and who better than Terry White?
"I see Terry's appointment as a real coup for St Leonards and I am confident Terry will pick up from where Mickey finished and take the club forward."
Taylor says he had no idea about his fate until Tuesday afternoon when he took a call from his chairman.
Taylor joined the Saints in February as assistant to Andy Thomson and took over full time during the summer after helping steer the club away from relegation last season in the Dr Martens Eastern Division.
White will sign a two year deal at The Firs, and after 19 years at neighbours and rivals Hastings, the move will come as a shock to many.
He said: "I've always done my best for Hastings but I feel I have always been taking a little bit for granted there. Not by the fans but by the infrastructure.
"A month ago I made my 600th appearance for the club and not one person from the club said: 'well done'. They didn't even announce it over the tannoy.
"St Leonards made it obvious that they wanted me and I am very flattered.
"I thought long and hard about the decision because I have been at Hastings for so long. It wasn't easy for me but I have to test myself.
"I am not deserting a sinking ship, Hastings are top of the league and I hope they win every game from now till the end of the season apart from two.
"I haven't got a great deal of money to spend but my criteria is to get in local players. I hope to turn ordinary players into good players and I hope all of Mickey's players will support me."
White takes over at St Leonards immediately and will lead a training session tonight ahead of Saturday's home match against Spalding United.
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