The news comes less than 24 hours after Villa’s 2-0 defeat at Norwich City on the final day of the Premier League season as the club finished just two points above the relegation zone.
The 53-year-old Scot was at the club’s training ground on Monday morning to say his farewells to the Villa staff.
A club statement read: “Aston Villa can confirm that Alex McLeish’s contract has been terminated with immediate effect. The club has been disappointed with this season’s results, performances and the general message these have sent to our fans.
“The board wishes to assure supporters that we are conscious in every sense that Villa expects and deserves more and we will strive to deliver this.”
Villa chairman Randy Lerner said: “We need to be clear and candid with ourselves and with supporters about what we have lacked in recent years.
“Compelling play and results that instil a sense of confidence that Villa is on the right track have been plainly absent.
“The most immediate action that we can take is to look carefully at our options in terms of bringing in a new manager who sees the club’s potential and embraces our collective expectations.”
The early favourite for the Villa Park role is Norwich City boss Paul Lambert, who has guided the Canaries to a 12th-place finish after an impressive debut campaign in England’s top flight.
However, Norwich chief executive David McNally insisted earlier on Monday he is ready for a fight to keep Lambert at Carrow Road.
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