Rovers' new owners the Venky's Group dispensed with Allardyce's services despite the team sitting relatively comfortably in 13th place in the Barclays Premier League.

The 56-year-old took over at Ewood Park in December 2008 and, having guided Blackburn out of the relegation zone to safety in that campaign, led them to a respectable 10th place last season.

Although the results this term have been mixed so far - including a 7-1 defeat at Manchester United at the end of November - a win over Bolton on Sunday would have seen Rovers move within touching distance of a European spot.

As it was, the 2-1 loss to 10-man Wanderers proved to be Allardyce's last game in charge, news he had not seen coming.

Allardyce told Sky Sports: "I had to pop in to see the chairman this afternoon and he presented the rather shocking news to me. It was obviously unexpected, but that's the world of football today.

"It hasn't really been explained to me and I'm a little confused in my own mind at the moment, but the reality will kick in in a couple of days.

"For now it's just about me thanking everybody at Blackburn Rovers.

"I have had a fantastic two years there and really enjoyed my time with everybody - how well we did, given the circumstances when I took over, and how we built the club going forward.

"The support of everyone at Blackburn - the fans, the players and the board - was what I really enjoyed.

"It was under relatively difficult circumstances financially, but I understood that before I took the job and, unfortunately, it is no more.

"It's up to them now where they take the club forward. I'm not a part of it, I'm very disappointed about that and would have liked to have been a part of it but I'm not."

Venky's, an Indian poultry company, took the decision less than a month after completing their purchase of Blackburn for £23million.

A statement on the club's official website read: "The Venky's Group, owners of Blackburn Rovers Football Club, has today confirmed the departure of manager Sam Allardyce and assistant manager Neil McDonald with immediate effect.

"First team coaching duties will be taken on by Steve Keane for the immediate future.

"We have taken this decision as part of our wider plans and ambitions for the club.

"We would like to put on record our thanks to Mr Allardyce for his contribution to Blackburn Rovers Football Club."

Blackburn club captain Ryan Nelsen expressed his sadness at Allardyce's dismissal.

"I am devastated for Sam," Nelsen said. "He had an absolutely fantastic relationship with all of the players.

"Everyone respected him. He took the club out of the doldrums really.

"We were in massive trouble with no money. He solidified us and put us into a top-10 position, and again he did it on a shoe-string."

Nelsen added: "I'm just getting over the shock of it. We've got to get over it, but at the moment I want to say, and I can speak for nearly all the players I'm sure, that they will be devastated. He was a very likeable character."

League Managers Association chief executive Richard Bevan lamented the plight of Allardyce, who had previously fallen victim to a takeover when he lost his job under Mike Ashley's regime at Newcastle.

"When new owners take over a club, sadly, the manager's position often hangs by a thread," Bevan said.

"To Sam's great misfortune this has now happened twice and, on both occasions, it has been extremely difficult to understand the thinking behind the dismissal.

"It is ironic that one minute Sam can be proposed as the next England manager and the next he finds himself out of work.

"He is widely acknowledged within the game as one of the most progressive and forward-thinking managers, embracing new concepts and technologies to create an environment which leads to success for his club.

"It will not be long before Sam, with his exceptional management experience, is back in a managerial post."

Prior to his brief spell at Newcastle between May 2007 and January 2008, Allardyce enjoyed a highly successful eight-year tenure at Bolton and only last week received a glowing reference from England head coach Fabio Capello.

What Allardyce might have gone on to achieve as Blackburn boss in the club's new era of ownership will never be known, but Nelsen believes he deserved to be given more time.

"It is their company so they can do what they want," Nelsen said. "Is it a risk? They must have done their due diligence and said no.

"But history tells you Sam has done an absolutely fantastic job with Blackburn, and for him not to get an opportunity with the (new) resources is bad.

"But obviously they think this is the best thing for the club. It's their prerogative."