The club currently languish in 19th position and have managed just three wins from their opening 10 games.

Burley, who won the Premiership manager of the year award in April 2001, admitted last week that he faced a make-or-break fortnight.

And Ipswich have now ended his eight-year reign at Portman Road, with Tony Mowbray taking over first-team affairs in a caretaker role.

After his sacking, Burley praised supporters for their loyalty during his spell charge.

"It has been pleasing to see supporter levels grow from an 11,000 average in my first season to an average of 25,000 fans.

"I am proud of bringing through some of the best young players in the country such as Kieron Dyer, Richard Wright, James Scowcroft and, this season, Darren Bent and Darren Ambrose," said Burley.

Ipswich chairman David Sheepshanks paid tribute to his former manager, Burley.

"It is with great sadness that the board of directors have taken the difficult decision to relieve George Burley from his position as manager," said Ipswich chairman David Sheepshanks.

"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.

"However, after the heady successes of our first year back in the Premiership, last season was a year of bitter disappointments, which culminated in our losing Premiership status.

"This was despite a huge investment in additional players for combined transfer fees of approaching £15m.

"The board still took the view that George Burley 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," added Sheepshanks.

Former Ipswich Town legend Terry Butcher is back in management at Motherwell and may be among the contenders.

But he told BBC Sport Online: "I'm employed at Motherwell at the moment and I'm really enjoying it. I'm happy at Fir Park.

"I'm Ipswich through and through and George is Ipswich through and through, but the club have been down the route of empoying previous players so probably they will go for somebody different this time."