Manager Joe Royle has sensationally left the club by mutual consent. A statement from Town on Thursday evening confirmed rumours which had been circulating on the TWTD Message Board throughout the afternoon.
Chairman David Sheepshanks thanked Royle for his three-and-a-half years in charge at Portman Road: "Joe and I have met today and agreed that this is the right moment to go our separate ways.
"The parting is entirely amicable. I would like to place on record our warm appreciation and thanks for the tremendous job that Joe has done at Ipswich during his tenure, managing the club initially through turbulent times and building a side that reached the play-offs in two out of the last three seasons."
Royle, who had a year left of his Town contract, 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."
Royle took over from George Burley in October 2003 following the Scotsman's sacking earlier in the month. The former Everton, Oldham and Manchester City boss's record with the Blues was as follows: Played 189, won 81, drew 48 and lost 60.
Town say they are seeking applicants for the job with Colchester manager Phil Parkinson likely to be installed as an early favourite, having been tipped for the job on a number of previous occasions.
The Blues look likely to go for a young up and coming manager in the mould of Parkinson, former skipper Tony Mowbray, currently with Hibs, Doncaster United's Dave Penney, Southend's Steve Tilson or Luton's Mike Newell.