The Football Association has announced Fabio Capello has resigned as England manager, and it has been accepted with immediate effect.
Capello had criticised the FA on Italian television following the decision to strip John Terry of the captaincy ahead of a court case in July. On Wednesday, a meeting with the board was held and Capello - who oversaw 28 wins, eight draws and six defeats during his time in charge - tendered his resignation.
An FA statement read: "The Football Association can confirm that Fabio Capello has today resigned as England manager. This follows a meeting involving FA chairman David Bernstein, FA general secretary Alex Horne and Fabio Capello at Wembley Stadium.
"The discussions focused on the FA board's decision to remove the England team captaincy from John Terry, and Fabio Capello's response through an Italian broadcast interview.
"In a meeting for over an hour, Fabio's resignation was accepted and he will leave the post of England manager with immediate effect."
Capello has come in for heavy criticism in the English press, with several newspapers calling for his resignation in light of his reaction to the Terry affair, but Bernstein said he was satisfied with the manager's behaviour.
"I would like to stress that during today's meeting and throughout his time as England manager, Fabio has conducted himself in an extremely professional manner," Bernstein said. "We have accepted Fabio's resignation, agreeing this is the right decision. We would like to thank Fabio for his work with the England team and wish him every success in the future."
A press conference will take place on Thursday at midday local time.
Prior to the announcement, ESPNsoccernet had been informed that the FA had lined up Harry Redknapp as Capello's successor.
With Capello's contract having been due to expire at the end of Euro 2012, Tottenham boss Redknapp had long been tipped to take on the role, but his tax evasion case had raised doubts. The FA had been closely monitoring developments in the case and, following Wednesday's not guilty verdict, the path was made clear to offer the 64-year-old the job.
It remains to be seen whether Spurs would allow Redknapp to take on the role part-time until the end of the season, but former national team manager Sven-Goran Eriksson believes he is the perfect man for the job.
Eriksson told BBC Sport: "I think Redknapp will be a very, very good choice. He's English; he knows his football. He is doing a great job with Tottenham and has done a great job with every team he's had in the past, so I guess it will be him.
"You need to be an experienced manager used to dealing with the big names and some knowledge about international football would help. I think Harry has all these things."
Scotland boss Craig Levein feels it may not be feasible for Redknapp to take on the national job in addition to his club duties.
He told BBC Radio 5 Live: "I think it's extremely difficult. I believe England have got a great opportunity in the summer going to the Euro finals.
"It might be very difficult for a manager to stay at his club and devote the time that's needed to do the England manager's job. I don't know what the FA will decide is best way forward."
Guus Hiddink is reported to have expressed an interest in taking the job.