Assistant Gary Mercer will take temporary charge of the Tigers, who are at the bottom of the Super League.

Steadman had been under pressure after a disastrous start to the season which has seen the club lose all seven of their opening Super League fixtures.

After a board meeting on Tuesday, the directors told Steadman on Wednesday that his 13-year association with the club was at an end.

I have the right credentials and qualities to turn it around but unfortunately it's not going to happen Graham Steadman

"I can understand where the directors are coming from," said Steadman.

"The long-term future of the club is of paramount importance but I do feel it is a premature decision.

"It has been a testing four-week period. But I had not intentions of walking away from what I see as a very tough challenge.

"I have the right credentials and qualities to turn it around but unfortunately it's not going to happen," added the 42-year-old ex-Great Britain international.

"I'll move on and take a bit of time out and turn up one day in the away changing sheds and possibly come back and haunt this place."

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Castleford chief executive Richard Wright paid tribute to Steadman but said that change was needed to improve results.

"He has done everything he can to turn things around but our early-season performances and particularly the losses over Easter have shown that something is not working and, as a result, we have to change things."

Steadman had been at Castleford as a player and coach for 13 years. He took over as head coach two years ago following the departure of Stuart Raper to Wigan.

After Saturday's defeat to Wakefield he insisted he would not resign and even addressed a sit-in protest by scores of fans.