Reid: Sunderland reign over (AdamDavy/Empics)

Coaching staff members Adrian Heath, Bobby Saxton, Tony Book and Mike Walsh have also departed.

Former Manchester City boss Reid has gone just a day after his side succumbed to a 3-1 defeat against champions Arsenal, continuing their disappointing start to the Premiership season.

After twice steering the Stadium of Light club to the top flight, he then achieved two top-seven finishes in successive seasons.

But things started to go wrong last year as the goals dried up and wins became harder and harder to come by.

The Wearsiders only just avoided the drop - but chairman Bob Murray kept faith with Everton legend Reid despite growing discontent among supporters.

That discontent manifested itself during a pre-season trip to Belgium, when Reid was drenched with beer by an irate fan following a poor display.

He made a double transfer swoop for strikers Tore Andre Flo and Marcus Stewart in a bid to pep up Sunderland's dismal goalscoring record.

And although he appeared to have bought himself breathing space with a crucial 1-0 home win against Aston Villa, his managerial reign has now come to an end.

The club are currently 17th in the Premiership table - the position in which they finished last time around.

Chairman Murray paid tribute to his former manager's achievements, saying: 'Sunderland is totally unrecognisable now to when Peter Reid walked through the door at Roker Park in 1995.

'In taking this difficult decision it's hard to realise that it has had to come to this, but the club must always come first.

'Nearly a quarter of the season has gone and we are at the wrong end of the table and can't wait any longer for performances to improve.

'We have invested more than £22 million in the playing side in the last nine months, but unfortunately results have not changed for the better since last season.

'I have enjoyed a close professional relationship with Peter and the board, and I would like to thank him for his significant contribution and efforts for the club in the last seven years.

'We will be appointing a successor as quickly as possible and hope to have someone in place before our next league game.

'Most importantly, we are looking for someone we believe can improve our league position in the short term and secure our Premier League status.'

Former Leeds managers David O'Leary and George Graham have been linked with the Sunderland job.