Stuart Pearce has been told by the Football Association that his contract as England U21 manager will not be renewed when it expires at the end of June.
The 51-year-old's future had been in doubt for the last 12 months but his fate was sealed following England's disastrous showing at the European U21 Championship in Israel this month.
Pearce's team lost all three of their group matches in Israel and scored just once, from the penalty spot.
FA chairman David Bernstein said it was time for a change.
"I'd like to thank Stuart Pearce for his hard work," Bernstein said in a statement on www.thefa.com.
"Nobody can doubt his commitment to the job throughout his time as Under-21 coach.
"He has done extremely well in qualifying for finals tournaments, but after the disappointment of the past two tournaments we believe it is time to change coach.
"It is important the organisation now considers the best approach for the role of Under-21 coach and how this works best within the overall England structure before making any new appointment."
Gareth Southgate is odds-on favourite to replace Pearce while former England coach Steve McClaren is also thought to be interested in the post.