Derby County have confirmed that they have terminated the contract of manager Steve McClaren.

The 54-year-old had been expected to leave the Rams after failing to guide the team to the Championship playoffs.

McClaren has been linked with Newcastle United, who narrowly avoided relegation on the final day of the Premier League season.

The former England boss took charge at Derby in 2013 before steering the side to the Championship playoff final in his first season. However, a dramatic defeat by Queens Park Rangers at Wembley Stadium denied them a place in the top flight.

"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," read a statement on Derby's official website.

"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 playoff final appearance in 2014."

McClaren's former clubs include Middlesbrough, FC Twente, Wolfsburg and Nottingham Forest.