Assistant coach Terry Venables has also lost his job in what the Football Association said was a unanimous decision by its board.

The FA brought a swift end to McClaren's 18-month reign as England's head coach at an emergency meeting.

McClaren's position had become untenable after the 3-2 defeat to Croatia on Wednesday.

FA chairman Geoff Thompson said: "Like every England fan, we are all bitterly disappointed that we have failed to qualify for Euro 2008, and I know Steve feels that disappointment more than anyone.

"Of course we have no divine right to play in major tournaments, but it is quite right that qualification is expected.

"I would like to thank Steve for the work he has done since taking on the position last summer. His commitment to the job could not be questioned and I wish him the best for the future.

"The recruitment process for the new coach begins now and we will do everything to get the right man for the job."

The FA has plenty of time to search for a replacement with the next scheduled fixture a friendly in France at the end of March.

McClaren, 46, who had a four-year deal, is expected to be paid more than £2m in compensation and ex-Chelsea boss Jose Mourinho is the bookies favourite to succeed him.

Former Middlesbrough boss McClaren admitted before the Croatia match that he would "take responsibility" if England failed to reach the European Championship finals in Austria and Switzerland.

The FA took action to dismiss McClaren ahead of the 2010 World Cup qualifying draw in Durban, South Africa, on Sunday.

England's failure to reach a major tournament for the first time since the 1994 World Cup finals will cost the FA at least £8m in lost revenues.


Thompson promised the FA will conduct a "root and branch" review of the England team set-up, to be led by chief executive Brian Barwick and which will begin with immediate effect.