The Blades finished fifth in League One this season but fell foul in the promotion play-offs with Preston North End taking the crown in yesterday's showcase final at Wembley - beating a dismal Swindon Town by four goals to nil.
A statement on the clubs official website, sufc.co.uk read; 'Sheffield United today announce that Nigel Clough, the Club's First Team Manager, and his Management staff, are to leave Bramall Lane with immediate effect following the decision by the Board that a change in direction was necessary for the forthcoming season.
The search for the Club's new First Team Manager will now start and it is hoped that this will result in identifying and recruiting the right candidate within a relatively short period of time.
The Club would like to place on record its thanks to Nigel, as well as his backroom staff of Gary Crosby, Andy Garner, Martin Taylor, Simon Clough, Michael Forsyth and Matt Brown for their contribution to the Club during their time at Bramall Lane and wish them all well for their future.'