Burley: Seven-year tenure (PhilCole/Allsport)

Chairman David Sheepshanks confirmed the decision at a Portman Road press conference. It comes after Town crashed to a 3-0 midweek defeat away to fellow strugglers Grimsby Town.

Burley, a Town legend as a player, took over as manager in 1994 - and after play-off heartbreak, finally steered Ipswich into the Premiership in 2000.

A superb season followed as the Suffolk outfit finished fifth and qualified for Europe - but the following campaign saw them relegated back to Division One.

Now former Colchester boss Burley has paid the price for a continued run of poor form, and assistant Tony Mowbray will take control of the team while Town's board seek a successor.

Sheepshanks said: 'It is with great sadness that the board of directors have taken the difficult decision to relieve George Burley from his position as manager.

'I would like to place on record our immense thanks to George for his outstanding service and many tremendous achievements throughout his tenure - Wembley 2000, finishing fifth in our first season in the Premiership and competing in the UEFA Cup are highlights in our history of which George can be justly proud.

'We took the view that George was the right man to lead us back to the Premiership, but this season - even though retaining a Premiership squad - performances have not improved.

'Given our single-minded ambition to gain promotion this season, the directors have decided that it is time to draw a line under a frustrating 12 months.

'As custodians of Ipswich Town Football Club, the board have acted now in order to give new management the best possible chance of achieving our goal.'

Burley thanked Town supporters for their backing during his tenure as boss, and added: 'It was a tremendous opportunity to come back to manage Ipswich Town after 14 years as a player.

'During my time as manager I have enjoyed some great successes, most significantly taking the club back into the Premiership, finishing fifth and qualifying for Europe after a 20-year absence.

'I was delighted to be recognised for these achievements with both the FA Premiership Manager of the Year Award and the Managers' Manager of the Year Award.'

Ipswich's next match sees them take on Sheffield Wednesday in a crucial bottom of the table clash at Portman Road.