Crystal Palace and Ian Holloway have parted company by mutual consent the club's co-chairman Steve Parish has confirmed.
• Daly: Holloway's exit
At a news conference called to announce the news, he said: "Ian's contract at Crystal Palace has come to an end by mutual consent
"Ian felt that a new approach might help keep us in the division.
"I've enjoyed every minute of working with Ian. He leaves our club with his head held very high.
"I'd like to put the record straight. We've never fallen out. We've worked together brilliantly. We feel we need to move on to progress."
Holloway only took over at Selhurst Park last November and led them to promotion via the play-offs.
But this season only Sunderland's woeful form has kept them off the foot of the table and the 4-1 defeat at home against Fulham on Monday was the final straw.
Holloway said: "I have pride in the job we've both done. It wasn't easy. If Steve's last manager [Dougie Freedman, who left for Bolton] wasn't headhunted I wouldn't have been here.
"We need to shut up shop in this division. At the minute we've got a whole new group there.
"Part of my talking with Steve was about am I the one with the energy left?
"I have to hold my hand up and say we didn't keep the spirit that got us up. We changed too much too quickly."
Holloway cut a forlorn figure after Monday's defeat, which saw Palace take the lead before conceding four goals in the space of 36 minutes.
The former Blackpool boss met Palace co-chairman Steve Parish afterwards but played down the importance of the summit.
"We talk all time," he said. "I'm not going to talk about what we just spoke about to be perfectly honest. I'm not talking about my future at the football club, I'm talking about the football club and that is all I have ever done."
Holloway said he would be meeting again with Parrish on Tuesday, with speculation intensifying that his brief tenure at Selhurst Park was in the balance.
"It is about what is right for the football club and that is what it will always be about between me and Steve. We were having a meeting anyway, we always do when we are having a warm-down. We will talk about some bits and pieces and learn from it. That is the meeting and that is what we always do."
Palace recruited 16 players after being promoted via the play offs, including Frenchman Florian Marange who declared himself "disgusted" when he was left out of Palace's 25-man Premier League squad, alongside another new signing Stephen Dobbie.
The club have lost five straight games since a 3-1 win over Sunderland at Selhurst Park, a match that led to the departure of Paolo Di Canio as the Black Cats manager. Holloway would be the second managerial casualty in the top flight behind the Italian if he were to go.