Tony Parkes has parted company with Blackburn after 35 years with the club.
Parkes joined as a player in 1969 from non-league Buxton and on six occasions has acted as caretaker manager for the club.
Most recently he took charge of the first team in September following Graeme Souness’ departure for Newcastle, and before the arrival of current boss Mark Hughes.
Blackburn boss Mark Hughes said: "Tony will be leaving his post. Unfortunately he has been the victim of reshuffle in the club and, at the moment, there is not a position for him.
“I would like to thank Tony for his contribution to Blackburn Rovers. He has been at the club for 35 years but at the moment there is not a role for him so the decision had to be made.”
Rovers chief executive John Williams was due to meet Parkes this morning to inform him that his contract was being terminated.
But it is understood the 55-year-old first learned of his departure by reading a report in a morning newspaper.
Hughes wants to bring in Wales Under-21s manager Glyn Hodges, and the former Sheffield United player is in talks with the club over a contract.
Hodges would replace both reserve team manager Parkes and reserve team coach Rob Kelly, who moved to Leicester earlier this week.