Royle led Ipswich to 15th place in the Championship this season

Royle led the club to 15th place in the Championship this season and left after a meeting with the Portman Road club's chairman David Sheepshanks.

"Joe and I met on Thursday and agreed that this is the right moment to go our separate ways," said Sheepshanks.

"The parting is entirely amicable. I would like to place on record our warm appreciation and thanks for the tremendous job Joe Royle has done."

He added: "He managed the club initially through turbulent times and built a side that reached the play-offs in two out of the last three seasons."

Royle took over at Portman Road in October 2002 but has struggled to mount another promotion assault.

He said: "I would like to thank everyone involved at Ipswich Town - the fantastic staff and the players for their support and for giving their best at all times.

"As the chairman said, we part extremely amicably and I wish the club, its staff and the supporters nothing but the very best for the future."

The club say they will seek applicants for Royle's successor "as soon as possible".