Allardyce’s behaviour was deemed “inappropriate” by the __football Association after he became embroiled in a newspaper sting in which he offered advice to bogus businessmen on circumventing rules on transfers.
He also looked to use his position as England manager to secure a £400,000 deal to act as an ambassador for a fictitious Far East firm on top of his £3m-a-year salary.
Allardyce apologised to FA chairman Greg Clarke and CEO Martin Glenn for a “significant error of judgement” during a series of emergency meetings at Wembley yesterday.
Yet despite his backtracking he paid the ultimate price and an agreement to mutually terminate his two-year contract was made after just two months at the helm.
“It was a great honour for me to be appointed back in July and I am deeply disappointed at this outcome,” said a devastated Allardyce, who admitted additional comments, including those in which he mocked predecessor Roy Hodgson as “Woy,” had caused embarrassment.
Under-21s coach Gareth Southgate will now take charge of England on an interim basis for the next four games – Malta, Slovenia, Scotland and Spain – while the search for Allardyce’s successor begins.
Southgate will effectively be handed an audition for the job.
Arsenal manager Arsene Wenger was the FA’s first choice to replace Roy Hodgson after Euro 2016 and he could come back on their radar given his contract is due to expire at the end of the season.
It is understood Allardyce, 61, accepts he has only himself to blame for his stunning downfall as the ‘dream job’ he craved for the best part of a decade slipped through his fingers.
Undercover reporters from The Daily Telegraph twice arranged meetings with him, during which he was filmed agreeing to strike a lucrative deal with a fictitious Far East firm to act as an ambassador.
Allardyce also said the FA’s rules on third party ownership of players were “ridiculous” and said there were ways to “get around them”.
Those comments, in particular, left the integrity of the FA at risk and in a statement released just before 8pm last night they pulled no punches.
“Allardyce’s conduct was inappropriate of the England manager,” it said. “He accepts he made a significant error of judgement and has apologised.
“This is not a decision that was taken lightly but the FA’s priority is to protect the wider interests of the game and maintain the highest standards of conduct in football.
“The manager of the England men’s senior team is a position which must demonstrate strong leadership and show respect for the integrity of the game at all times.”
Allardyce had left his home in Bolton early yesterday morning after the allegations emerged on Monday night and attended the summit talks with his agent, Mark Curtis.
He departs after just one match in charge, the win over Slovakia earlier this month, and with his reputation in tatters.
"This afternoon, I met with Greg Clarke and Martin Glenn and offered a sincere and wholehearted apology for my actions.
"Although it was made clear during the recorded conversations that any proposed arrangements would need The FA’s full approval, I recognise I made some comments which have caused embarrassment.
"As part of today’s meeting, I was asked to clarify what I said and the context in which the conversations took place. I have co-operated fully in this regard.
"I also regret my comments with regard to other individuals."
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