Chris Powell has been relieved of his position as First-Team Manager at Charlton Athletic with immediate effect, the club announced on Tuesday morning.
Following a disappointing FA Cup exit at the hands of Sheffield United on Sunday, Charlton are currently bottom of the Championship having taken 27 points from 30 games so far this season.
Owner Roland Duchâtelet said: “We have been working with Chris Powell and his representatives for a couple of weeks to try and agree a contract extension which would have seen us continue to work together.
“There was good progress, but we could not reach an agreement over the club’s football strategy going forward
“The situation put a strain on the working relationship between Chris and the board. Therefore I think it is best for all parties that we part ways at this stage.
“I would like to thank Chris for his commitment and hard work over the past three years. The club enjoyed a number of good times under his leadership.
“However, given the club’s position in the league and the number of important fixtures upcoming, I felt this difficult decision was unavoidable at this time.
“We will look to quickly appoint a replacement who we feel will give us the best chance of avoiding relegation from the Championship.
“I can assure supporters this was not an easy decision, but it has been made with the club’s future in mind. Time will tell if it is the right decision.”
Powell took control of Charlton in January 2011, when he replaced Phil Parkinson, and the club went on to finish in 13th position in League One.
A squad overhaul followed in the summer and the Addicks went on to win League One, before securing a top-10 finish in the Championship last term.
The current season has proved more challenging and Charlton are currently four points adrift of safety, although have at least three games in hand over the clubs immediately above them in the league table.
The club will be making no further comment at this time.