The Yorkshire club, where Egyptian defender Ahmed Fathi plays, has been instantly condemned to the Championship after winning promotion last season.

The decision was made by mutual consent as announced by Chairman Kevin McCabe in a press conference on Wednesday.

"This is a mutual decision in some respects prompted by the events of the last few days. Both Neil and I believe it is for the good of the club," McCabe said.

McCabe paid tribute to the manager who led United to the top flight after more than 10 years in second division.

"He goes well and truly leaving his mark in the history of Sheffield United. He has played a key role in assisting and the reshaping of the club which is held at high esteem in the world of football," added McCabe.

The Sheffield-born coach also guided the Blades to the semi-finals of the FA Cup and League Cup, and reached the second division playoff final in 2002-2003.

Warnock is the third Premiership manager to leave his job at the end of the season, following Glenn Roeder's resignation from Newcastle and the sacking of Stuart Pearce by Manchester City.