Wolves have sacked manager Dave Jones after a poor start to the season which has dented their hopes of making a quick return to the Premiership.
Jones has watched his side struggle this season
As first reported by BBC West Midlands, Jones learned his fate at a meeting with chairman Rick Hayward on Monday.
Jones' departure followed Saturday's 1-0 loss to 10-man Gillingham which left Wolves 19th in the Championship.
Assistant manager Stuart Gray has been put in temporary charge as the club begins the hunt for Jones' replacement.
Jones took over the Molineux club in January 2001 and guided them to promotion into the Premiership after a 3-0 play-off final victory over Sheffield United at the end of the 2002-2003 campaign.
But they finished bottom of the top-flight table last season as they lost their survival battle and were relegated along with Leeds and Leicester.
Leicester also endured a disappointing set of results to their Championship challenge and that led to Micky Adams resigning as manager.
"We will always be grateful to Dave for the success he achieved in winning promotion to the Premiership - something several managers before him had failed to do," said Hayward.
"However, having been relegated after just one season in the top flight, the board has been disappointed by the poor start to this campaign.
"It was our wish and intention to make a quick return to the Premiership but performances and results to date have left us off the pace by some margin.
"Therefore, we decided action was needed in order to try to get the season back on track before it is too late."
Jones' attempts to get Wolves promoted hit problems even before the season started when striker Henri Camara left for Celtic.
And results failed to pick up after a 2-1 defeat at Stoke in the first game of this term as Wolves won just four league games out of 15.
The loss to fellow strugglers Gillingham, who were reduced to 10 men after just 12 minutes, last Saturday has proved the final straw for the Wolves board.
Ironically, Adams and Gary Megson, who left Wolves' Black Country rivals West Brom last week, have been touted as early candidates to take over at Molineux.