Championship News: Paul Lambert leaves Wolverhampton Wanderers
Lambert leaves after the club undertook a review of football operations which took place at the end of the season.
The 47-year-old Scot will be the third head coach relieved of his duties by owners Fosun since they bought the club last July.
First team coaches Stuart Taylor and Rob Edwards, and Head of Sport Science Tony Daley, will also be leaving the club with immediate effect.
The Championship outfit are yet to make a decision on the new man to take the reins at Molineux.
They issued a statement, which read: "Wolves and Paul Lambert have agreed to part company following a football review which took place at the end of the season.
"The club would like to place on record its thanks to Paul for his dedication and professionalism during his time at the club, which included some memorable victories, and wish him all the best in his future career.
"In addition, first-team coaches Stuart Taylor and Rob Edwards, and Head of Sport Science Tony Daley, will also be leaving Wolves with immediate effect.
"As part of the coaching restructure, the club are currently in discussions with Pat Mountain regarding the possibility of him taking up a role within the Academy.
"Tony (Daley) and Rob (Edwards) have given many years of loyal and committed service to Wolves, and the club would like to thank them for their substantial contributions over a long period of time.
"Along with Paul, all three departing members of the backroom staff leave with the club's best wishes.
"A further announcement on a new head coach and backroom team will be made in due course."
Wolves finished the season 15th in the Championship standings following a mixed set of results.