The 43-year-old was appointed as Blues head coach in July 2022 and oversaw 21 wins in his 63 games in charge, the last of which came on Friday night in the West Midlands derby against West Brom.

A statement released on the club's official website on Monday morning said: "It is essential that the board of directors and the football management are fully aligned on the importance of implementing a winning mentality and a culture of ambition across the entire football club.

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"With this in mind, Birmingham City has today parted company with head coach, John Eustace.

"In his first season at the helm, he guided the team to a 17th-place finish, securing Sky Bet Championship status with three games remaining.

"During his time at St Andrew's, he galvanised the squad to deliver a number of memorable moments in testing circumstances.

"The club would like to thank John for his contribution. His dedication and work ethic was evident throughout his time in B9 and he will always be welcomed back to St Andrew's.

"A new first-team manager will be announced in the coming days who will be responsible for creating an identity and clear 'no fear' playing style that all Birmingham City teams will adopt and embrace.

"The club will be issuing no further comment at this time."

Reports have surfaced suggesting Wayne Rooney is in the frame to replace Eustace following his mutually-agreed exit from MLS outfit DC United.

Speaking after his departure, Rooney said: "It's the right time. I've done everything I can to get this club into the play-offs. It's not a single thing that's happened. It's about timing."

The links have intensified after Rooney's son Kai began following Birmingham and several players on Instagram.

Deja vu for Birmingham fans as club hierarchy push for big-name appointment

Sky Sports EFL editor Simeon Gholam:

For supporters of Birmingham City, there will be a real feeling of deja vu with this announcement.

The year was 2016, and the Blues were on the cusp of the play-offs and had been taken over by Trillion Trophy Asia a couple of months earlier.

The owners then decided to dispense with Gary Rowett, who had the side three points off sixth, to go with a big-name appointment in Gianfranco Zola.

It was a move that proved disastrous. Zola picked up just two wins in his 24 games in charge, taking the club from seventh in the league to 21st.

The season ended with Harry Redknapp in charge for their final three games, and he managed to win two of them to keep the club just about in the Championship.

After two 10th-placed finishes under Rowett in the seasons prior to his dismissal, the club have not finished above 17th in seven seasons since.

Birmingham fans will be hoping lightning does not strike twice, and the next manager will take them forwards rather than back into decline.