Frank Lampard becomes the 10th manager sacked from his role and will be replaced by former Paris Saint-Germain coach Thomas Tuchel.
Lampard had been in charge for just over 18 months but departs following five defeats in the last eight games.
He will be replaced by Tuchel, sources from Goal revealed that a verbal agreement as been in place between Chelsea and their incoming manager for a couple of days before the news of Lampard’s exit became known.
It comes just 24 hours after Lampard led Chelsea to a 3-1 win over Luton Town in the FA Cup, but the club’s Premier League form has led to growing concerns.
The 42-year-old achieved a top-four finish last season, which was deemed impressive having taken over when the club was under a transfer ban.
However, this season Chelsea spent £220 million ($275m) on new signings to try and close the gap on Liverpool and Manchester City.
It hasn’t worked, with Timo Werner and Kai Havertz undergoing lengthened periods of poor form under their new manager while Chelsea’s performances as a team we’re increasingly getting worse.
Club chairman Bruce Buck watched on with technical and performance adviser Petr Cech as Leicester City ran out comfortable 2-0 winners against Lampard’s side in their last league fixture.
The loss to Brendan Rodgers’ men was just the latest row of defeats against the Premier League’s best teams, which recently included setbacks against Manchester City and Arsenal.
Chelsea has only won against West Ham of the top 11 clubs this season while picking up the second-lowest number of points at this stage of a season since Roman Abramovich bought the club in 2003.
Lampard earned 1.67 points per match in the league, which is the poorest of any manager appointed since Abramovich bought Chelsea.
The former England midfielder had been open to continuing but the decision was made by his employers.
Former Mainz and Borussia Dortmund boss Tuchel is set to replace the outgoing boss, following his sacking by Ligue 1 champions PSG just before Christmas.
Tuchel, who has been turning himself for the role, could be the right man to get the best out of both Werner and Havertz, as well as Christian Pulisic who rise to through Dortmund’s academy.
Meanwhile, Lampard’s legendary status remains unchanged and many Chelsea fans would have been happy to see him remain.
A banner had been planned for the Shed End part of the stadium, persuading Chelsea to stick with their record scorer, with 211 goals, and manager.
Lampard managed Derby County previously after retiring from a remarkable playing career that saw him win the Champions League and three Premier League titles.