Talbot spent just under a year in charge at Oldham
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Oldham Athletic have parted company with manager Brian Talbot by mutual agreement - with coach Tony Philliskirk taking temporary charge.
The Latics caused an FA Cup shock last month by beating Manchester City 1-0 - but have lost their last seven games and conceded 16 goals in the last four.
Talbot now departs Boundary Park after just under a year in charge.
"We are sorry that things have not worked out for Brian and the club," managing director Simon Corney said.
"We know that he has worked extremely hard to try and turn things around.
"Tony Philliskirk has agreed to take charge of team affairs and will have full control for Saturday's game."
Chief executive Alan Hardy added: "It's always a sad day when you part company with a good friend. There's no doubt, Brian came in last year and saved us from relegation.
"The injury situation has not been kind - Chris Killen came back after injury and scored 10 goals in six games, but then got injured again and was out for another two months.
"Rodney Jack and Jermaine Johnson would also have made a big difference if they had been fit, but neither has played much this season.
"The owners sat down with him and to be fair, Brian was more concerned about the club rather than his own position.
"But both parties agreed that a change was probably in the best interests of the club."
Former Arsenal and Ipswich star Talbot had previously managed West Bromwich Albion, Aldershot and Rushden & Diamonds.
After leading Rushden from the Conference to Division Two, he left Rushden last March and replaced Iain Dowie as Latics boss two days later.
Oldham finished 15th last season but have struggled for much of this term, despite their FA Cup heroics, and are currently just two points above the relegation zone.
The board will meet again in the next seven days to discuss Talbot's replacement - but will not be rushed into a decision.