"Newcastle United today announced that the employment of Graeme Souness has been terminated with immediate effect," read a statement carried by the club's official website.

The Magpies slumped to a 3-0 defeat at the hands of Manchester City on Wednesday, their fifth defeat in six Premiership matches.

Newcastle’s official website confirmed that academy boss Glenn Roeder will be hired as a caretaker coach, assisted by team's skipper Alan Shearer for the upcoming Premiership clash against Portsmouth on Saturday.

Souness said he is disappointed by his St James' Park exit after 18 months in charge of Newcastle.

"I am obviously saddened at the way things have worked out at St James' Park," Souness was quoted as saying by Sky Sports in a statement.

"I have enjoyed living and working in Newcastle and my family and I have been made to feel particularly welcome by the Geordies (locals).

"I wish the club, the players and the supporters good fortune and success going forward," he added.

Newcastle are in 15th place of the Premiership table with 26 points.