Sheffield United sack Nigel Clough
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The Blades reached the semi-finals of the Capital One Cup but finished fifth in League One and failed to gain promotion through the play-offs.
They were beaten in the semi-finals by Swindon Town who lost out in the final to Preston on Sunday.
A statement on the club's website said: "A change in direction was necessary for the forthcoming season."
Clough, 49, had managerial spells at Burton Albion and Derby County manager before replacing David Weir at Bramall Lane in October 2013.
Clough's backroom staff of Gary Crosby, Andy Garner, Martin Taylor, Simon Clough, Michael Forsyth and Matt Brown will also leave the club, which faces a fifth successive year in the third tier.
The club statement added: "The search for the club's new first-team manager will now start and it is hoped this will result in identifying and recruiting the right candidate within a relatively short period of time.
"The club would like to place on record its thanks to Nigel, as well as his backroom staff."
PY