Steve McClaren has resigned as manager of Championship strugglers Nottingham Forest after 112 days in charge.
McClaren, 50, stepped down during a meeting with chairman Nigel Doughty that followed Sunday's 3-1 home defeat against Birmingham City.
Forest are currently fourth from bottom in the Championship, having collected eight points from 10 games.
The club has confirmed that Doughty, also the club's owner, will step down as chairman at the end of the season.
Forest said in an official statement that they would begin the search for a new manager and chairman immediately, and that McClaren had made it clear he would not be seeking any compensation.
"Part of the role of chairman is to accept responsibility for what happens at the club," said the statement. "As such Mr Doughty accepts responsibility for his personal decision to recruit Steve McClaren as our manager in the close season. Given our very poor start to the season and Steve's resignation, Mr Doughty feels it is only right to do so."
The club statement also added that Doughty would continue to support the club financially once he stepped down after 10 years as chairman.
McClaren was reportedly unhappy about being unable to sign two players on loan.
"He was going to walk out anyway, I understand," said BBC Radio 5 live's Pat Murphy. "He'd hoped to go out on a high note after the game against Birmingham. He was upset at not being able to secure two Premier League players on loan terms. The chairman felt the wages would be too high."
McClaren had stated after the 5-1 midweek defeat at Burnley that dramatic changes needed to take place at the club.
McClaren, 50, stepped down during a meeting with chairman Nigel Doughty that followed Sunday's 3-1 home defeat against Birmingham City.
Forest are currently fourth from bottom in the Championship, having collected eight points from 10 games.
The club has confirmed that Doughty, also the club's owner, will step down as chairman at the end of the season.
Forest said in an official statement that they would begin the search for a new manager and chairman immediately, and that McClaren had made it clear he would not be seeking any compensation.
"Part of the role of chairman is to accept responsibility for what happens at the club," said the statement. "As such Mr Doughty accepts responsibility for his personal decision to recruit Steve McClaren as our manager in the close season. Given our very poor start to the season and Steve's resignation, Mr Doughty feels it is only right to do so."
The club statement also added that Doughty would continue to support the club financially once he stepped down after 10 years as chairman.
McClaren was reportedly unhappy about being unable to sign two players on loan.
"He was going to walk out anyway, I understand," said BBC Radio 5 live's Pat Murphy. "He'd hoped to go out on a high note after the game against Birmingham. He was upset at not being able to secure two Premier League players on loan terms. The chairman felt the wages would be too high."
McClaren had stated after the 5-1 midweek defeat at Burnley that dramatic changes needed to take place at the club.