Fulham manager Jean Tigana's contract will not be extended beyond the end of the season.
In a personal letter to the manager, reproduced on the club's website, chairman Mohamed Al Fayed, wrote:
"I have never doubted your abilities as a coach and, equally, do recognise that there have been many achievements during your time at the club of which you can rightly be proud.
"Obviously, our position in the Premier League both this year and last year has been disappointing, particularly given the degree of investment and resources provided, and I am sure you would be the first to agree."
WHO WILL SUCCEED TIGANA?
5-1 fav David O'Leary
7-1 John Collins
8-1 Bryan Robson, Louis van Gaal
10-1 George Burley, Gianluca Vialli
1000-1 Jimmy Hill
*odds supplied by William Hill
The contracts of assistant manager Christian Damiano and fitness coach Roger
Propos are also not being renewed.
Tigana, who joined the club in July 2000, has been the subject of speculation for some time regarding his future with the club.
The Frenchman's spell at Fulham started brightly as he won the Division One title in his first season, took them to the semi-finals of the FA Cup and into the Uefa Cup.
But he has come under fire recently with Fulham struggling for consistency in the Premiership, culminating in last weekend's 3-0 defeat to Manchester United.
Fulham also went out of both this season's Worthington and FA Cups to lower-league
Some of Tigana's purchases have proved to be expensive flops, in particular £11.5m record buy Steve Marlet.
Fulham are appealing against Fifa's recent ruling that they still owe Lyon £2.5m for the French striker.
The search for a new manager will now begin, with former Leeds United manager David O'Leary linked with the job in the past.