Former FFA technical director Smith was appointed 16 months ago but Perth has now gone 18 games without a win, despite twice having a two goal lead in recent games, only to lose or draw.

Perth are rooted to the bottom of the table without a win and just six points from 11 games so far this term.

A 1-0 home loss to Wellington on Friday proved the final straw for the Glory hierarchy, who have decided to replace Smith with assistant Dave Mitchell until the end of the season, when the situation will be reviewed.

"We have great respect for Ron Smith but believe that a new direction is needed if we're to make positive moves forward and have full confidence in Dave Mitchell to take on that challenge," co-owner John Spence said.

"Recently the performances have shown signs of improvement, however we still find ourselves in a precarious position after the first half of the season.

"The club is sitting in a position that is unacceptable. However we still have an opportunity to figure prominently and will work ever so hard to achieve our goal of a top-four finish.

"Ron is a total professional, he is someone who understands the game and the way things work.

"We had a long and frank discussion and it was agreed that the best solution was for Ron to step down from his current role and for us to have discussions with him about other positions because we all have great respect for his talents."

Spence, speaking on behalf of fellow co-owners Brett McKeon and Tony Sage, also paid tribute to the impact Smith has made on the club since arriving in July 2006.

"Ron came to this club some time ago when it was in very dire straits and he has done some amazing things," Spence added.

"He has been very dedicated, loyal and worked extremely hard. He leaves a legacy of quality players and young talent that will form the building blocks for the club in years to come."

Mitchell, who was brought to the club by Smith, immediately challenged his squad to turn around their dismal campaign.

"I had a chat to the players and I told them what I expect and what I want from now on," Mitchell said.

"Some of the performances have been good but obviously not good enough. There are careers at stake. We'll draw a line in the sand.

"Everyone's got to be on board. If you're all aboard, fantastic, but if you're not, well you won't be playing."