Chelsea sensationally sacked manager Luiz Felipe Scolari Monday in the wake of his side's goalless draw against Hull City at the weekend, dpa reported.
"Luiz Felipe Scolari has been dismissed as manager of Chelsea Football Club today with immediate effect," said the English Premier League club in a statement.
"Unfortunately the results and performances of the team appeared to be deteriorating at a key time in the season. In order to maintain a challenge for the trophies we are still competing for we felt the only option was to make the change now."
Assistant coach Ray Wilkins has been named as caretaker manager but Chelsea added that "the search for a new manager has already started and we hope to have someone in place as soon as possible."
Scolari, who won the World Cup in 2002 with Brazil, was appointed in June 2008 as the replacement for Avram Grant.
Chelsea currently lie fourth in the Premier League, seven points behind leaders and defending champions Manchester United.