Barnsley have sacked assistant head coach Tommy Wright after The Daily Telegraph reported he took a £5,000 payment from undercover reporters posing as football agents.
The 50-year-old Scot, who has denied any wrongdoing, was suspended immediately after the allegation came to light on Wednesday but the South Yorkshire club have now terminated his contract with immediate effect.
A statement published on the club's official website said: "A meeting between the club and Mr Wright was held this morning attended by club chief executive Linton Brown.
"After considering Mr Wright's response to allegations in today's Daily Telegraph about breaching FA rules over player transfers, Mr Wright was dismissed.
"The club was unaware of such matters nor was it involved in any wrongdoing. The club will continue to fully investigate the issues at hand and will co-operate with the regulatory authorities as necessary."