Peterborough United appeared to have parted company with Darren Ferguson tonight, although the struggling Championship club refused to confirm or deny reports that their manager had been sacked.

Sir Alex Ferguson's 37-year-old son has been said to be "under pressure" at London Road for the past couple of weeks and it did not help that Saturday's 3-1 defeat at Newcastle United saw Peterborough slump to the bottom of the table.

It is understood Ferguson was dismissed after meeting board members but neither Barry Fry, Peterborough's director of football, or Bob Symms, the chief executive, was prepared to comment as they left the ground late in the afternoon.

One explanation for such silence could be a possible on-going legal wrangle over a pay-off as Ferguson only signed a new four-year contract this summer after guiding Peterborough into English football's second tier.

Peter Taylor, the former England Under-21, Leicester and Hull manager who recently left Wycombe and is close to Fry, emerged as an early favourite to succeed Ferguson.

In the context of Ferguson's achievement in leading the club to successive promotions in his two full seasons since taking over in January 2007, dismissal now appears extremely harsh.

Very much his own man, Ferguson had, however, increasingly failed to see eye to eye with Darragh MacAnthony, the Peterborough chairman, and, privately, insiders claimed he could be "stubborn, wilful and unwilling to admit to mistakes".

Ten days ago it was reported that the manager, whose side have taken 11 points from 16 games this season, had been summoned back from a coaching course to hold "emergency talks" with MacAnthony and Fry. Although all parties concerned said no such summit had taken place, the denials were not be convincing.

Ferguson, who was assisted by Kevin Russell, leaves with his side a point adrift at the foot of the Championship but just four points removed from safety. Whatever the strengths and weaknesses of the former Manchester United, Wolves, Wrexham and Peterborough midfielder, it appears extraordinary for MacAnthony to have wielded the axe following a defeat at St James' Park.

After all, the 43,000 crowd Peterborough played in front of on Saturday was the biggest audience they had enjoyed since the club gained admission to the Football League in 1960. Moreover, Newcastle are arguably the Championship's strongest side.

"Let's be honest and say we were out-played," said Ferguson on Saturday. "But we were in League Two two years ago and were up against an ex-Premier League team who will probably be promoted as champions at the end of the season."