The Scottish FA say the former international player will leave his role “with immediate effect” following a board meeting on Thursday morning.
The hunt is now on to find a replacement who can lead the national side into the Euros, and a number of names are already in contention.
According to the website BetVictor, Scot Gemmill is most likely to take on the job with the odds sitting at 3/1.
He is followed by former Scotland boss Gordon Strachan at 4/1, David Moyes at 5/1, Steve Clarke at 5/1, Malky Mackay at 7/1, Derek McInnes at 12/1, Neil Lennon also at 12/1 and Craig Levein at 14/1.
So who do you think will be Scotland’s next manager?