The former Liverpool and Galatasaray forward has had a miserable time in charge of the Midlands side, collecting just 20 points in 20 Championship matches since succeeding Stale Solbakken in January.
His win ratio of just 25 per cent is worse on the Norwegian’s reign, and relegation to the third tier of English football for the first time since the 1980s was confirmed by Saturday’s 2-0 defeat at Brighton.
Despite signing a one-year rolling contract on his appointment from Doncaster, the Welshman has paid the price for the back-to-back demises, becoming the first side since Swindon Town in 1995 to suffer double relegation.
A statement on the club’s website read: “Manager Dean Saunders has been informed by Wolves that his contract is to be terminated. Assistant manager Brian Carey will also be leaving the club.
“Wolves have now begun a recruitment process, which in conjunction with the board will be managed by head of football development and recruitment Kevin Thelwell.”
The club are now looking for their fourth permanent boss since sacking Mick McCarthy in February 2012.
Terry Connor had a four-month reign, followed by Solbakken and Saunders, as the fans prepare for trips to the likes of Port Vale and Shrewsbury Town next season.
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