Magilton was suspended last week after being accused of headbutting QPR midfielder Akos Buzsaky after the 3-1 defeat by Watford in the Coca-Cola Championship.

Former Middlesbrough boss Gareth Southgate has already been linked as a successor to Magilton at the west London club. Youth coaches Steve Gallen and Marc Bircham had been placed in temporary charge last week.

QPR said last night it had been agreed "that it is in the best interests of the club and Jim Magilton if the parties move on in their separate ways".

The statement added: "The club would like to wish both Jim Magilton and (assistant manager) John Gorman good luck in the future and thank them for their hard work."

Magilton was stood down over an allegation he headbutted Hungarian player Buzsaky last week.

But a dressing-room source told Press Association Sport there had been no headbutt and claimed that Buzsaky merely took exception to Magilton's forthright post-match opinion.

Magilton was the fifth permanent manager to work under Italian chairman Briatore, following on from John Gregory, Luigi de Canio, Iain Dowie and Paulo Sousa.