Reid removed from Sunderland post

Reid, who was also the club's director of football, has a substantial amount of shares in The Black Cats although it is believed his contract had an agreement for a set fee if he was to resign or be sacked.

Having joined Sunderland in 1995, Reid took the club to two promotions with the disappointing relegation in 1996 sandwiched in between.

Upon their return to the top-flight, Reid manufactured a couple of seventh placed finishes, yet the standard of football had declined in recent years and last season they avoided the drop only on the last day of the campaign.

Not only has Reid left, he has been followed out of the Stadium of Light exit door by Adrian Heath, Bobby Saxton, Tony Book and Mike Walsh as chairman Bob Murray has opted for a total clear-out.

Speaking about the situation, Murray told the Sunderland official site: "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've 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. 

"I stand by my decision not to change manager during last season as I am convinced that we would have gone down if we had.  Whilst I know that recent months have been difficult and disappointing that should not cloud people's judgement to the many positive things Peter has achieved for this club over many years.

"I'm sure his services will be snapped up quickly by another club and he'll be successful again.  I have no hesitation in giving Peter a glowing reference, as he's been a great and committed manager to work with.

"As far as Peter's contract is concerned an automatic financial settlement was included from the outset, which could have been triggered by both parties.  This means that there will be no need for negotiations to reach a financial settlement. Peter's shares in Sunderland are a personal investment and remain his own to do with as he wishes.

"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.

"The international break should hopefully mean that there will be as little disruption to the players as possible.  Until a successor is appointed the remaining coaching staff will take training sessions for those players not on international duty.

"Overall the fans have been incredibly tolerant and supportive in the last few months and I would also like to thank them for that.  Now we need to stick together more than ever to give a new manager and the team support to get back to winning ways.  We all want what is best for the club."

Early candidates for the job include George Graham and David O'Leary, whilst veteran player Niall Quinn will also be the choice of some fans.

Although they spent £10 million on a new strikeforce of Tore Andre Flo and Marcus Stewart, there is likely to still be cash to spend.

Speaking about the available job, Graham said: "I am keen to talk to any club that match my own ambitions."

O'Leary said: "I am gutted for Peter but I am an out of work manager and keen to talk to any club."