Steve McClaren: Former England manager has been sacked by Derby County

Derby County have terminated the contract of head coach Steve McClaren with immediate effect.

The former England manager, who had been in charge at Pride Park since September 2013, was reported to be negotiating the terms of his departure earlier in the hours before his exit was confirmed.

Real Madrid coach Paul Clement is Sky Bet's odds-on favourite for the vacancy having been backed in from 4/5 to 1/20.

McClaren, meanwhile, has been linked with a move to manage Newcastle United but does not think that speculation impacted on the results of Derby, who failed to finish in the play-offs, and says he was not attempting to engineer a move away from the club.

In a statement he said: “I’m very disappointed with the decision, especially as I have on three occasions reiterated my commitment to Derby County.

“The club means a huge amount to me, and I was not looking to leave. While we were all unhappy with the way the season ended, I still believe real progress was being made.

“I do not believe or accept that rumours linking me to the Newcastle United job were a factor in the team’s performances this year, as had been alleged.

“I wanted to remain with the club and was confident in leading the side to a successful season next year. However, I have to accept the club’s owner,Mel Morris, wants to take a new direction.

A statement on the Derby County web site said: "The decision follows a thorough review of the 2014/15 season by the club’s board of directors.

"The board believes that the appointment of a new head coach is required to continue the club’s on-field progress and the search is now underway to appoint a successor.

"The board remains firmly committed and driven to achieving promotion to the Premier League.

"The club would also like to take this opportunity to wish Steve McClaren well for the future and thank him for his work throughout his tenure, which included a play-off final appearance in 2014."