Former England manager Steve McClaren has been sacked as Derby's head coach, the Championship side announced on Monday.

McClaren, who took charge at the iPro Stadium in September 2013, has paid the price for failing to lead Derby into the Premier League in his two seasons in charge.

Derby suffered an agonising near-miss last season when they were beaten in the play-off final by QPR's last-gasp winner from Bobby Zamora.

The Rams looked on course for promotion this season as they led the second tier table in March, but a wretched run of form saw them finish eighth and miss out on a play-off place.

"Derby County have terminated the contract of head coach Steve McClaren with immediate effect," a statement on the club's website read.

"The decision follows a thorough review of the 2014/15 season by the club's board of directors.

"The board believes that the appointment of a new Head Coach is required to continue the club's on-field progress and the search is now underway to appoint a successor.

"The board remains firmly committed and driven to achieving promotion to the Premier League.

"The club would also like to take this opportunity to wish Steve McClaren well for the future and thank him for his work throughout his tenure, which included a Play-Off Final appearance in 2014."

McClaren, who has also managed Middlesbrough, FC Twente, Wolfsburg and Nottingham Forest, had been strongly linked with the Newcastle job earlier this season.

The 54-year-old reportedly turned down the chance to join Newcastle because he wanted to lead Derby to promotion, but his dismissal could see him back in the frame for the St James' Park post if interim chief John Carver is dismissed.