Chelsea have confirmed assistant first-team coach Henk ten Cate has had his contract terminated.
The Blues made the announcement on their website this afternoon, revealing the decision was reached following a meeting this morning.
The former Ajax manager joined the Blues as Avram Grant's right-hand man last season and brought with him a reputation as a disciplinarian from his time as Frank Rijkaard's assistant at Barcelona.
However, after Grant was sacked last week despite reaching the Champions League final, the club have decided to let the Dutchman follow him out of the exit door.
A statement on chelseafc.com said: 'Chelsea Football Club can confirm that it terminated Henk Ten Cate's contract today. This follows a meeting this morning.
'As a result of the team management changes at Chelsea FC, and in the light of any forthcoming appointment, it was clear this was the correct decision for all parties.
'Everybody at Chelsea would like to thank Henk for his contribution since coming to the club last year.'
As speculation over who will replace Grant continues, Ten Cate's exit seems to leave Rijkaard as a firm outsider to get the job.
Several names are still being strongly linked to the managerial vacancy at Stamford Bridge.
Luiz Felipe Scolari's Portugal bosses say they are aware he has been added to the 'short-list' of candidates.
Chelsea are refusing to make public the field of contenders being considered by Russian owner Roman Abramovich.
And the Portuguese Football Federation appear to want to make their Brazilian head coach a new offer to stay on after Euro 2008 within the next few days after vice president Amandio De Carvalho admitted to news sources: 'I already know that Chelsea are interested in Scolari.'
Chelsea are hunting a new boss after axing Grant last Saturday.
Inevitably, a raft of candidates have emerged in speculation - including former Inter Milan chief Roberto Mancini, who left on Tuesday having already signalled his plan to leave following the Champions League defeat by Liverpool in March.
Rijkaard, Blackburn boss Mark Hughes and Russia coach Guus Hiddink are all understood to be targets, although Hiddink's advisors have already claimed he would not be interested - even though strong links with Abramovich already exist through the Russian national side.
And none of the others have publicly expressed a desire to take up the lucrative and prestigious role.
Now Scolari, 59, who was head-hunted by England after Sven-Goran Eriksson's dismissal in 2006 but rebuffed the Football Association's advances, leaving the way open for Steve McClaren to fill the breach, is also in the frame.