Wolves have sacked boss Mick McCarthy following Sunday's 5-1 home thrashing by Black Country rivals West Brom.
McCarthy has been in charge at Molineux since July 2006 but his side have won only one of their last 13 matches.
"The board took the difficult decision after a run of form which has seen Wolves pick up 14 points in the last 22 league games," read a club statement.
"Terry Connor will take charge of team training in the interim until a new manager is appointed."
The statement added: "The board would like to place on record their sincere thanks and appreciation to Mick McCarthy and he leaves with the very best wishes of everyone connected to the club."
Sunday's loss saw Wolves drop into the relegation zone on goal difference, having collected just 21 points from 25 games.
Some fans vented their anger towards the directors' box during the match and a couple of hundred demonstrated outside the ground long after the final whistle.
Club owner Steve Morgan, who is on a skiing holiday, decided to act 13 games before the end of the Premier League campaign.
With Wolves not involved in the FA Cup next weekend, they do not play until the trip to Newcastle on 25 February.
They began the season by taking seven points from their opening three games, but a 2-0 home defeat by Tottenham prompted an alarming slide.
They have not kept a clean sheet since August's draw with Aston Villa and the fans' anger towards McCarthy boiled over when they trailed Swansea 2-0 in October, although they recovered to draw 2-2.
The 2-1 win at QPR on 4 February ended a run of 11 games without a win in all competitions but the West Brom loss was a fourth successive home defeat.
Former Wolves and England boss Graham Taylor told Sky Sports News: "There was a real lack of leadership on the pitch against West Brom. The players have to look at themselves.
"Their Premier League futures are at risk and, irrespective of form and style, they have to get back to winning ways.
"A new manager can sometimes have an effect on the players for a short period of time.
"Maybe that is behind Steve Morgan's thinking, hoping someone new will get a reaction to help the club stay in the Premier League."
McCarthy led Wolves to the top flight as winners of the Championship in 2008-09 and they finished 15th the following season.
They survived relegation last term thanks to Stephen Hunt's goal against Blackburn with three minutes to go on the final day of the campaign.
Factfile
Born: 7 February 1959, Barnsley
Playing career: Barnsley, Manchester City, Celtic, Lyon & Millwall
Managerial career: Millwall (1992-96), Republic of Ireland (1996-2002), Sunderland (2003-06), Wolves (2006-12)
