Derby County, bottom of the Premier League with only one win from 14 games, parted company with manager Billy Davies on Monday.
"I have met with Billy Davies this morning and we have decided mutually in the best interests of both parties that to go our separate waysis the correct decision at this time," Derby chairman Adam Pearson said on County's website (www.dcfc.co.uk).
Davies, formerly in charge of Motherwell and Preston North End, was appointed Derby boss in June 2006.
After guiding Derby back to the Premier League for the first time since 2002 with a with a 1-0 victory over West Bromwich Albion in the playoff final at Wembley last May, the Scot initially said he was not sure if he would be in charge this season after a turbulent first year in charge.
Davies, who spent all last season asking in vain for an assistant, later announced that he would lead the team in the top flight.
However, his relationship with the club's directors became increasingly strained as his team struggled on the pitch in the Premier League where they have mustered only six points from 14 games.
Their only win came against Newcastle United while they have suffered some crushing defeats, including 6-0 at Liverpool, 5-0 at Arsenal and 5-0 at home to West Ham United and have yet to score an away goal.
