Billy Davies has left as manager of Nottingham Forest with Steve McClaren in talks to replace him at the City Ground.
Davies' future has been the subject of speculation for some time because of an uneasy relationship with the club's board.
Davies has often expressed his frustration with Forest's recruitment strategy at various points, feeling his squad was not strong enough.
Now the board have decided to act and have decided to dispense with the services of their boss.
Davies guided Forest to the play-offs for a second successive season last term, but they lost out to Swansea in the semi-finals.
Forest have wasted little time in finding a replacement and have opened talks with former England boss McClaren about taking over at the City Ground.
McClaren is out of work and has been linked with a number of jobs since leaving Wolfsburg last February, but the former Derby coach looks set to take over at Forest.
A statement on the club's official website read: "Nottingham Forest have announced this afternoon that they have terminated the contract of manager Billy Davies with immediate effect.
"They have also revealed that they are now talking to Steve McClaren about the City Ground vacancy"
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