New supremo Jeff Shi, of Chinese owners Fosun Group, made the decision 'following discussions over the last few days', according to a statement on the club's website.

The statement also promised an announcement regarding a new head coach in due course.

UPDATE: Walter Zenga appointed new Wolves boss

Shi, main Wolves director, said: "I would like to sincerely thank Kenny for everything he's done for Wolves over the last three years.

"He's shown true professionalism during his tenure and over the course of the transition to new ownership. I would like to wish him all the very best for the future."

COMMENT: No way to treat a dignified professional

POLL: Were Wolves right to sack Jackett?

Jackett joined Wolves at the beginning of the 2013/14 season and the club were crowned champions of League One as it won promotion into the Championship.

In the season after that Wolves finished in seventh position, missing out on the play-offs on goal difference. Last season, Jackett guided the club to 14th in the Championship.

His position appeared in danger when Fosun Group bought the club last week, and now, a week before the season starts, the new owners have decided to terminate his contract.