Wolves have sacked Vítor Pereira weeks after he signed a new long-term contract.
Pereira took over from Gary O'Neil last December and guided the Molineux club away from the relegation zone before he secured a 16th-placed finish after a notable double over Manchester United.
Matheus Cunha joined United in the summer and, despite a poor start to the new campaign, Pereira put pen to paper on a new deal on Sept. 16.
However, results failed to improve and 57-year-old Pereira has been dismissed following Saturday's 3-0 loss at Fulham.
Executive chairman Jeff Shi said: "Vítor and his team worked tirelessly for Wolves and helped guide us through a challenging period last season, for which we are grateful.
"Unfortunately, the start to this season has been a disappointment and, despite our strong desire to give the head coach time and matches to find an improvement, we have reached a point where we must make a change.
"We thank Vítor and his staff for their efforts and wish them the very best for the future."
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Youth-team coaches James Collins, who leads the Under-21 team, and Under-18 boss Richard Walker will take over training while the club searches for Pereira's replacement.
Pereira and Wolves players clashed with home fans at Molineux last weekend after a 3-2 loss to Burnley.
It was followed by another defeat at Fulham, which Pereira described as the worst performance of his 38-game tenure.
That loss proved the final straw for Wolves and Pereira is on the hunt for another job, but his preference is to remain in the Premier League, the PA news agency understands.
Pereira was informed on Sunday morning that he would be relieved of his duties. He will not be paid the entire length of his contract, though, as a clause was inserted in his new deal which stipulated this.
Experienced Portuguese coach Pereira had considered his future in the summer after key figures like Cunha and Rayan Aït-Nouri were sold and replaced by players without Premier League experience.
However, he continued with the aim to build on last season's success -- where he had been nominated for Manager of the Season -- but late goals against Tottenham and Brighton damaged morale.
With another poor defeat on Saturday at Fulham, which made it eight in 10 league fixtures, Wolves decided to act and now face a race against time to find a successor for Pereira ahead of this weekend's trip to Chelsea.
The Portuguese said on Instagram: "It has been a privilege to manage Wolverhampton Wanderers and experience unique moments with this club and its supporters.
"I would like to thank the club's owners for their trust, the players for their hard work and commitment over these months, and all the staff for making me feel part of the family.
"I wish the club all the best for the rest of the season."