Manchester City have confirmed that Sven Goran Eriksson has left the club by mutual consent.
The the future of the Swedish manager has been the subject of intense speculation in recent weeks after City’s Premier League form faltered after Christmas.
City eventually slipped to ninth place and the club’s owner, Thaksin Shinawatra, announced that he would consider Eriksson’s position in the summer.
Thaksin spent more than £46m on new players after buying the club, but his relationship with Eriksson deteriorated in the second half of the season.
The club have now confirmed the news that they have parted company with Eriksson.
Chief executive Alistair Mackintosh told the club’s official website: “The board of directors and all at Manchester City would like to thank Sven for his efforts and contributions throughout the season and we wish him all the best for the future. Sven remains a friend of the club.”
Eriksson added: “I have enjoyed my time at Manchester City very much indeed and in particular, I would like to thank the fans, players and staff for their amazing support over the season.
“I wish the club, and everyone associated with it, much success in the coming years.”
City will make no further announcement until a successor is appointed but reports over the weekend suggested that Blackburn boss Mark Hughes had been given permission by his club to discuss the vacancy.
Fenerbahce’s Brazilian coach Zico have also been mentioned as a possible candidate, along with recently sacked Chelsea manager Avram Grant.
Eriksson, meanwhile, has been tipped to become the next coach of the Mexican national team.