David Wagner has left Huddersfield by mutual consent on Monday evening.
Mark Hudson will take charge of Sunday's home clash with champions Manchester City as the search begins for a new head coach.
Chairman Dean Hoyle said: 'Under David's management, we took this club to the highest position it has held in almost 50 years and created memories that will last forever.
'His achievements will rightly put him up there in Huddersfield Town history alongside great names like Herbert Chapman and Mick Buxton; legendary managers who changed the face of this club.
'As I had said previously, I had no intention of sacking David this season. Subsequently David - being the great man he is - came to us and made it clear that he needs a break from the rigours of football management.
'I know the term 'mutual consent' is often a byword for the manager being sacked in professional football, but this is a truly joint decision.
'We discussed making that change immediately, but he also made it clear that he would give his all for the rest of this season before departing in the summer if we preferred.
'After a long discussion we all felt that David staying at the club until the end of the season was best, but we have kept discussions open and we all now feel that the time is right to part ways.
'David has a real, genuine love for this club and, like me, his foremost concern in our talks has been to establish what is best for Huddersfield Town.
'I cannot thank David enough for what he has achieved. Along with his family, he will always be a friend to me and Huddersfield Town.'
Sam Allardyce, Alan Pardew and David Moyes are being tipped as the candidates to replace Wagner as manager.
Nesaiknruy_Legend
145
Feel bad for him, it was an impossible task. You can't blame a manager for not carrying a championship team outside the relegation zone. Without funding and top players, it's an impossible task for anyone, even someone like Poch or Simeone...
tacbrtz
123
Nobody will do for Huddersfield what Wagner did. Who ever they bring in with end up in the Champions League
Abbawaziri
98
He has already done a lot of favour to this football club, he started by lifting them from league1 to the championship and then to there first ever top premier league flight, he then survived relegation which so many people are saying he deserves an accolade. It’s really sad to see him go after all he has done to this football club wishing him the best of luck.
Kaeilmnprs
69
Good job for this manager. Everyone knows that Huddersfield hasn't top players. This coach tried very much. Huddersfield is a premier league team without star. The best players of Huddersfield are Schlinder, Mooy, Prichard and Mounie. These are very good players but not premier league stars in my opinion like Fulham players Schurle, Mitrovic.
yeocdruyz
16
Nobody will do for Huddersfield what Wagner did. Who ever they bring in with end up in the Champions League
aren't you contradicting yourself? Champions League or Championship?