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Published 11:52 11 Mar 2016 GMT
Updated 12:37 11 Mar 2016 GMT
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Newcastle managing director Lee Charnley said: "I would like to thank Steve personally for his services to Newcastle United. He is a man of integrity and class and he has conducted himself with great dignity during this difficult time.
"Steve worked tirelessly to try and bring success to Newcastle United. He has the utmost respect of all the players, staff and management and he leaves with our very best wishes and sincere thanks."
It's understood that Rafael Benitez's appointment is imminent in what is seen as a huge coup for a club in the relegation zone.
Benitez's last job was at Real Madrid but has been without a job since the start of 2016 after Florentino Perez promoted Zinedine Zidane to the Bernabeu hot seat.
A Champions League winner with Liverpool, Benitez is believed to be close to signing on a ten-game deal with the Magpies until the end of the year, with a three-year contract expected if he manages to keep them in the Premier League.
Charnley's statement continued: "We feel that a change is now needed in order to give the Club the best possible chance of securing its Premier League future.
"A further announcement on a successor to Steve will be made in due course."
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