The news was officially announced on the Stock Exchange on a day rife with rumour from the north-east of England.

BBC News 24's Rosie Odonaghue on two years of trials and tribulations at St James' Park

Dalglish earlier left St James' Park after 17 months in the job.

Dalglish, 46, set off from his Southport home for the club's training ground at Chester-le-Street with the intention of speaking to club officials, but returned home to await developments.

Dalglish: Results did not materialise

Shares in the club jumped sharply after The Mirror reported that former Chelsea boss Gullit had been offered the manager's job on hopes that a change could restore the club's fortunes.

Newcastle narrowly avoided relegation last season and have drawn both their games in the new campaign.

The Mirror reported that Magpies directors travelled to Amsterdam on Monday for secret talks with Gullit - who left the hotseat at Premier League rivals Chelsea last season.

BBC News 24's Rosie Odonaghue on two years of trials and tribulations at St James' Park

The Dutchman, it said, will be unveiled as the club's third manager in 19 months before Sunday's live televised game against Liverpool.

The Mirror journalist who wrote the story, Harry Harris, believes Dalglish would not have been too surprised to learn of his fate.

The Mirror's Harry Harris says there have been problems between Dalglish and the Newcastle board

"The Newcastle directors took a view after the first match of the season ... that perhaps not everything was right on the field, the manager having spent another £15m in the close season.

"There have been problems between Kenny Dalglish and the board during the summer."

Frank Gilmore: "The majority of fans will not be sad to see him go"

Fans were surprised at the timing of Dalglish's departure.

Frank Gilmore, treasurer of the club's independent supporter's association, said: "The timing was very strange just two games into the season but I think the majority of fans will be glad to see him go."

George Hill, 30, from Fenham, Newcastle, said: "It's really bad the way they've sacked Dalglish at this point in the season.

"It's taken him time to build his team, he spent £15m in the summer and now they have sacked him.

"What will happen to all those players?

"There are rumours going around that Ruud Gullit doesn't like (England captain Alan) Shearer.

"It will be a disaster if Shearer leaves this club."

But Steve Symmington, 19, of Kenton, Newcastle, was more positive.

He said: "Dalglish has not brought the success to Newcastle that was expected of him.

"If Ruud Gullit can bring the success that we want then that would be great.

"I feel sorry for Dalglish but at the end of the day he had his chance."

Spurs 'keen' on Gullit

The Mirror's rival, The Sun, reported that Gullit had been offered to Tottenham Hotspur.

According to the paper, Spurs Chairman Alan Sugar was given 48 hours to accept the approach.

The deadline apparently passed on Wednesday night with Sugar deciding not to rush into the decision to replace Christian Gross.