The club have endured a torrid start to the season and are currently languishing in 14th place.
The manager held several meetings with chairman Daniel Levy this week and TheIndependentunderstands the club have begun scouting potential replacements, including Red Bull Leipzig’s Julian Nagelsmann and Bournemouth’s Eddie Howe.
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In a statement, chairman Daniel Levy said: “We were extremely reluctant to make this change and it is not a decision the Board has taken lightly, nor in haste.
“Regrettably domestic results at the end of last season and beginning of this season have been extremely disappointing.
“It falls to the Board to make the difficult decisions – this one made more so given the many memorable moments we have had with Mauricio and his coaching staff – but we do so in the Club’s best interests.
“Mauricio and his coaching staff will always be part of our history. I have the utmost admiration for the manner in which he dealt with the difficult times away from a home ground whilst we built the new stadium and for the warmth and positivity he brought to us. I should like to thank him and his coaching staff for all they have contributed. They will always be welcome here.
“We have a talented squad. We need to re-energise and look to deliver a positive season for our supporters.”