The 49-year-old Dane was appointed on a two-year contract in June 2012 and led Swansea to a maiden trophy in the League Cup last season, but they have won only one of their last 10 league games in the current campaign.

"It is a decision we have taken reluctantly," said Swansea chairman Huw Jenkins in a statement published on the club website.

"But it's a decision made in the best interests of Swansea City Football Club and our supporters."

Swansea said that former captain Garry Monk would work as head coach alongside current first-team coach Alan Curtis "for the foreseeable future".