The contracts of Bonetti and his assistant, brother Dario, were terminated at a meeting on Tuesday evening.

It is believed Bonetti is currently negotiating a pay-off deal with officials at the club.

Bonetti said on Tuesday that he would be holding a news conference on Wednesday afternoon, but that has now been cancelled.

Former Dundee manager Jim Duffy and Paraguayan coach Francisco Ocampo are among the names being mentioned in connection with the vacancy.

The Bonettis' departure was announced by Dundee chief executive Peter Marr after he emerged from the meeting.

Marr said: "After talks with the Bonettis, and the management team, it has been mutually decided to terminate their contract."

The news ended months of speculation surrounding the Italian's future.

However, when Ivano Bonetti emerged from the meeting, he appeared to be under the impression that a final decision was still to be taken.

"We still have lots to sort out but we will keep talking," he said.