The Spaniard was set for showdown talks with chairman Jeremy Peace on Monday after a poor Premier League season petered out with a 2-1 home defeat to Stoke, and following those talks the club announced his departure.
“Both Pepe and the club set out with the best intentions of making the appointment work. However, having reflected on events both on and off the field during our talks today, it became apparent that it was in the best interests of both parties for there to be an amicable parting,” read a statement on the club’s official website.
“We are grateful for the manner in which the existing coaching staff and players have rallied behind Pepe to get the club over the line in what has proved an extremely competitive division.”
His departure was first announced on twitter.