Saunders paid the price for a dreadful run of results which saw Wolves slide into English football's third tier for the first time since 1989.

Favourite to succeed him is Kenny Jackett, who surprisingly resigned as manager of Millwall this morning.

This afternoon 75 per cent of the 2,200 voters polled via the Express & Star website said Wolves owner Steve Morgan was right to wield the axe with Saunders.

Morgan will now begin the search for the club's fifth manager in just 15 months – with the former Watford defender Jackett hotly-tipped from sources inside Molineux this afternoon.

He has previously won promotion from League One with Millwall and issued a statement today saying he was 'ready for a new challenge'.

Other candidates being rumoured are Peterborough boss Darren Ferguson, son of Sir Alex, and former Albion manager Gary Megson.

In a statement, Morgan vowed to take 'as long as is necessary' to get the right man for the job.

Kenny Jackett an early contender for Wolves job

Dean Saunders sacked: Reaction from Twitter

Advertising

Assistant manager Brian Carey, who like Saunders left Doncaster to join Wolves in January, has also been sacked.

Head of football development and recruitment Kevin Thelwell will lead the hunt for Saunders' successor.

In a statement, the club said: "Manager Dean Saunders has been informed by Wolves that his contract is to be terminated.

"The decision has been made following confirmation of Wolves' relegation to npower League One.

Advertising

"Assistant Manager Brian Carey will also be leaving the club.

"Wolves have now begun a recruitment process, which, in conjunction with the board, will be managed by Head of Football Development & Recruitment Kevin Thelwell.

"The club will now take as long as is necessary to make this crucial appointment and there will be no publicly communicated timescales.

"Wolves would like to thank Dean and Brian for their efforts in what has been a very difficult period for everyone, and wish them both the very best for the future.

"The club will be making no further comment at this stage."

But this afternoon Jackett, who led Millwall to this season's FA?Cup semi-final, had moved to the head of the bookies' queue at 6/4.

Former Wolves midfielder now Peterborough manager Ferguson was priced 4/1 with Owen Coyle 6/1 and ex-Molineux man Paul Ince 14/1.

Mick McCarthy was 33/1, along with club legend Steve Bull, and Terry Connor 50/1.

Wolves legend Mel Eves led the reaction today by saying:?"I like Dean as a person, but he's been totally out of his depth.

"The job proved to be too big for him – I don't think he was ready for Molineux. It was always going to be a big ask."

Saunders had vowed to rebuild Wolves in the immediate aftermath of relegation, which made unwanted history with the club becoming the first in English football to be relegated from the top to the third tier in successive seasons twice.

His comments suggested he expected to remain in his job.

However a pre-prepared statement released by Mr Morgan hours after the final whistle made no mention of Saunders' future.

Instead he warned the club would have to meet tough financial rules in League One, or face a transfer embargo. New financial fair play rules mean Wolves' £25 million wage bill will have to be slashed as they begin life outside the top two tiers of English football for only the sixth season in their history.

And Mr Morgan apologised to fans. "We have failed our supporters and the city and for that I am truly sorry," he said.

Saunders, aged 48, was hired with a brief to turnaround the club's fortunes after former boss Stale Solbakken presided over a sluggish first half of the season.

But instead the team dropped into the relegation zone and could not recover.

Dean Saunders "out of his depth" at Wolves

Dean Saunders' Wolves career in pictures

Live reaction to the shock sacking on Twitter: