Burnley and Scott Parker have parted ways by mutual consent, amid speculation that Steven Gerrard is set to take over at Turf Moor.
The Clarets' relegation from the Premier League was confirmed earlier this month.
They sit 19th on 20 points, three above bottom-place Wolves with four games remaining.
Since the start of November, Burnley have won only one top-flight match, coming back from 2-0 down to beat Crystal Palace 3-2 in February.
Speculation has been mounting over Parker's position, and the former Bournemouth boss has now left the club.
"It has been an immense privilege to lead this great club over the past two years. I have enjoyed every moment of our journey together, but feel that now is the right time for both parties to move in a different direction," Parker said.
"I reflect back with great pride on what we achieved during my time at the club, especially our unforgettable promotion season in 2024-25, and it was a true honour to lead this team into the Premier League.
"I would like to thank Alan and the ownership group for their support during my time at the club. My thanks also go to the fantastic and tireless staff behind the scenes and, most importantly, to the players, who have given me everything since the first day I arrived.
"Finally, thank you to the Burnley fans. I wish you all and this great club nothing but the very best for the future."
Mike Jackson will take interim charge for Burnley's final matches of the season, starting with a trip to Leeds United on Friday.
Former Liverpool star Gerrard, meanwhile, has been heavily linked with taking over at Burnley ahead of next season.
Gerrard has managed Rangers, Aston Villa and Al-Ettifaq.
Parker leaves Burnley having overseen 88 games in all competitions, winning 36 (40.9%).