The club confirmed the sacking on Monday afternoon and said Lou Macari and John Deehan had been put in charge of the team to face Sheffield United on Tuesday.

In a statement issued by the club, chairman Barry Rubery said: "We have mutually agreed that it is in both the club's and Steve's best interests that this amicable agreement has been reached."

The former Manchester United captain had been locked in talks with the club's multi-millionaire owner Rubery for most of the day.

The team, who almost made the play-offs last season, have struggled this season and are currently second bottom with just six points from 11 games.

Macari, brought to Huddersfield by Bruce last year as European scout, said: "I didn't expect to be taking the team to Sheffield and both myself and John Deehan are not happy about it, but we are employed by the club and we have to get on with it.

"I have spoken to Steve as a friend and he is now in talks with Mr Rubery.

"I would not take the job permanently, if it was offered, without Steve's blessing."