Dolan has left Bootham Crescent

The Third Division club made the surprise decision in a statement which said the management duo had been relieved of their duties.

It is thought the Minstermen could appoint a replacement for Dolan, who had been at Bootham Cresent for three-and-a-half years, as early as next week.

A club statement said: "The decision was taken by the board of directors to benefit the long-term financial position of the club and is considered to be in the best interests of York City Football Club.

"The board of directors is proposing to honour the contracts of Terry Dolan and Adie Shaw and have stated the club is not in a position to make any form of immediate financial settlement to bring their employment to an end before the expiry of their notice periods."

Dolan denies Rochdale link

Dolan had been linked with a possible move to Rochdale, something the former Spotland boss had denied only on Friday.

York chairman Steve Beck told the Yorkshire Evening Press: "On behalf of the board of directors, I would like to thank Terry Dolan and Adie Shaw for their service to York City Football Club and wish them both well for the future."