Dearden joined the Stags in December 2006 for his second spell at the Field Mill club.

But they have struggled this season and Saturday's 4-0 defeat by Rochdale leaves them second from bottom and two points from safety in League Two.

Chief executive Stephen Booth said: "We have agreed that it is in the best interests of Mansfield Town Football Club and Bill that we part company."

He added that the club would make an announcement within the next 48 hours about their future plans.