Grant had talks with Chelsea chief executive Peter Kenyon over the last couple of days, but the two parties failed to reach an agreement on the Israeli's future.

"Chelsea Football Club can confirm that Avram Grant has had his contract as manager terminated today. This follows meetings over the last two days," a Chelsea statement read.

"Everybody at Chelsea FC would like to thank Avram for his contribution since taking over as manager last September.

"We will now be concentrating all our efforts on identifying a new manager for Chelsea and there will be no further comment until that appointment is made."

Grant, who succeeded Jose Mourinho as manager last September, failed to get into acquaintance with Chelsea fans during his spell at Stamford Bridge.

The former Israel coach led Chelsea to the Carling Cup and UEFA Champions League finals this season, but lost to Tottenham and Manchester United respectively.