Chelsea have sacked manager Avram Grant after just eight months in charge.
The decision followed two days of talks between Grant, 53, and the club's chief executive Peter Kenyon.
The Israeli coach's position had been subject to intense speculation after Chelsea finished runners up in the Premier League and Champions League.
Chelsea said in a statement on their website that the search for a new coach would now begin and that the club will make no further comment.
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The statement said: "Chelsea Football Club can confirm that Avram Grant has had his contract as manager terminated today. This follows meetings over the last two days.
"Everybody at Chelsea FC would like to thank Avram for his contribution since taking over as manager last September.
"We will now be concentrating all our efforts on identifying a new manager for Chelsea and there will be no further comment until that appointment is made."
The futures of Chelsea assistants Steve Clarke and Henk Ten Cate are unclear and no official word has yet been given on their positions.
Grant, a close friend of Chelsea owner Roman Abramovich, took over when Jose Mourinho was sacked in September.
Frank Rijkaard, Sven-Goran Eriksson and, most recently, Brian Laudrup and Roberto Mancini have all been linked with a possible move to Chelsea.
Despite losing just two Premier League games while in charge, Grant attracted criticism from fans who claimed his team lacked style.
He was also criticised for losing February's League Cup final against Tottenham.
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