Billy Davies insisted he could leave Derby with his "head held high" after meeting with chairman Adam Pearson this morning and agreeing to part company with the club.
Davies departs with Derby rooted to the bottom of the Premiership with just one win and six points from their opening 14 games, following their promotion from the Coca-Cola Championship last season.
The Scot insists he has no reason to be ashamed. "What's quite ironic, on the morning of me parting ways with Derby, is that I'm going to the East Midland (Sports) Awards this evening to pick up the coach-of-the-year award," he told BBC Radio Five Live.
"I've had a wonderful time here, there's been lots of ups and lots of downs, but in the main I'm very proud of what has been achieved, and I'm now walking through these gates with my head very much held high."
Davies did admit, however, that he was sad to be leaving Pride Park. "Of course, it's always that way because there are great people here, my family are very settled and there's lots of good friends here," he added.
"But that's football, we know what football's all about, and the situation now is that it's time to move on to pastures new."
Despite Pearson reassuring Davies over his position following his takeover of the club at the end of last month, it appears the Rams' persistently poor form and the ex-Preston boss' barbed comments at the weekend sealed his fate.
"I have met with Billy Davies this morning and we have decided mutually, in the interests of both parties, that to go our separate ways is the best decision at this time," Pearson said in a statement released on www.dcfc.co.uk.
"Billy Davies leaves Derby County with our best wishes and our genuine gratitude in achieving a magnificent promotion to the Premier League, where everyone connected with the club wanted to be.
"We wish Billy all the best for his future career and both parties will now move forward, which I am sure will lead to future success for Billy Davies and Derby County."
Davies took over at Pride Park in January last year after opting to leave Preston, who he guided into the Championship play-offs for two years in succession.
After securing the Rams' status in the second tier, his first full season in charge saw Derby just miss out on an automatic promotion place before defeating West Brom in the play-off final at Wembley.
This season, his side have lived up to their billing as pre-season relegation favourites and a 2-0 defeat to Chelsea on Saturday made it eight games without a win and four successive losses.
They have also been beaten 6-0 by Liverpool and 5-0 by both West Ham and Arsenal this season.
After this weekend's match, he risked the wrath of Pearson by saying: "The problem we have is that we have to invest in the playing staff of this club.
"Hopefully I can see the chairman - who I've not seen in the last three weeks - and hopefully if there is any investment then it goes towards the playing staff."
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