The former France captain watched from the sidelines as Juve beat Mantova 2-0 thanks to goals from David Trezeguet and Pavel Nedved.

A statement on the club website read: "Juventus Football Club and Didier Deschamps have mutually terminated their contractual relationship that gave them both satisfaction, enthusiasm and success.

"The coach and the club have recognised that the conditions necessary to continue their relationship with the same satisfaction are lacking, and therefore have decided to amicably separate."

Deschamps did not speak at the post-match conference following the Mantova clash, but managing director Jean-Claude Blanc admitted that the situation was coming to a head.

"There is no official position," said Blanc in remarks reported by www.gazzetta.it.

"Deschamps' resignation has never been formalised. We will continue to speak to him and we will take together a decision in the near future.

"I want a winning Juve that lives up to its past and we will take decisions on that basis - on a sporting as well as an economic basis."

Blanc admitted there were differences between the club and the coach who wanted more money to spend in the transfer market after steering Juve back to the top flight in his first season in charge, just a year after the club was relegated for match-fixing.

It has already been speculated that Italy's World Cup-winning coach Marcello Lippi could be lured to Turin while Deschamps is reported to be a target of Lyon, the Ligue 1 champions whose own boss Gerard Houllier took charge of his final game on Saturday.