Sven-Goran Eriksson has left his post as Leicester manager following the club's mediocre start to the season.
Much was expected of the Foxes after an outlay of more than £10m on transfer fees alone in the summer, but they have struggled for consistency this term.
Although they are only five points adrift of the automatic promotion places in the Championship, a 3-0 defeat at home to lowly Millwall on Saturday left Leicester in 13th place.
That was the final straw for the club's Thailand-based owners Asia Football Investments, who held a meeting yesterday to discuss ending the Swede's one-year stay at the King Power Stadium.
And Eriksson's departure was confirmed in a statement on Leicester's official website, lcfc.com, last night.
"Leicester City Football Club has confirmed today that, by mutual agreement, Sven-Goran Eriksson has ceased to be the first team manager, with immediate effect," it read.
"First team coach Dereck Fazackerley has also left the club. The club and its board of directors would like to thank Sven and Derek for the contribution they have made to Leicester City during their 13 months at King Power Stadium."
Martin O'Neill, who managed Leicester for five years and led them to the Premier League as well as two League Cup triumphs, has emerged as the early favourite to succeed Eriksson.
Mark Hughes and Alan Shearer have also been touted as potential replacements.
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