Despite his continued upbeat statements over his job prospects, Pearce has effectively been a dead man walking for most of 2007, with an increasing majority of supporters vehemently against him continuing in the job.

City chairman John Wardle was thought to be on the brink of dumping Pearce in March, when defeat at Middlesbrough would almost certainly have marked the end of the former England skipper's two-year reign.

Instead, City won, launching a five-game unbeaten run which might have saved Pearce had it continued until the end of the season.

However, three defeats in the last four matches, including a home loss to Manchester United that left the Blues without a Premiership goal at Eastlands since New Year's Day and saw them post an all-time record low home tally of 10 goals, left Wardle with little alternative other than to show Pearce the door.

"Manchester City can confirm that the club has terminated the contract of manager Stuart Pearce with immediate effect," said a club statement.

In a simple one paragraph appreciation, chief executive Alistair Mackintosh thanked Pearce for his efforts on City's behalf and wished him well for the future.

At White Hart Lane yesterday, Pearce claimed if the axe did fall, he would simply find another job and prove himself a success elsewhere.

His immediate priority is taking charge of the England Under-21 side in this summer's European Championships in Holland.

And, with the Football Association known to want a full-time boss to lead the Under-21s from next season, the smart money must be on Pearce retaining the role, a deal which would no doubt meet with the approval of his Wiltshire-based family.

Meanwhile, City have vowed not to rush into a new appointment.

Former Thai Prime Minister Thaksin Shinawatra, whose takeover efforts are believed to be moving forward, could eventually have the final say in who succeeds Pearce, effectively ruling Sam Allardyce out of the running.

Allardyce is known to have preferred City to Newcastle but Shinawatra is not thought to be a fan, allowing the former Bolton boss to complete his move to St James' Park.

Neither is Paul Jewell thought to be in the frame despite his shock exit from Wigan today.

Jewell's name has been linked with City in the past but Latics chairman Dave Whelan has insisted his former manager intends to take a long break from the game.

* Manchester City's decision to terminate Stuart Pearce's contract will come as no great shock to the 45-year-old or the footballing world.

Only yesterday Pearce admitted his future at the club was shrouded in doubt after events on and off the field conspired to turn against him.

Talk of a Thai-based takeover at the club ensured he was never sitting comfortably in the City hotseat, while Joey Barton's recent off-field antics - coupled with some poor results off the pitch - ultimately left Pearce's position untenable after two years in charge.

Having taken over from Kevin Keegan as caretaker boss in March 2005, Pearce enjoyed a successful start to his stint in the City hotseat and was a penalty away from taking them to Europe just nine games after inheriting a side languishing in mid-table.

Ironically, his reign began with a 2-1 defeat to Spurs - just as it ended - but the former England left-back masterminded an eight-game unbeaten run which would have taken them into the UEFA Cup but for Robbie Fowler's late penalty miss against Middlesbrough.

City's remarkable run earned Pearce the job on a permanent basis and it was not long before he was being touted as a potential successor to Sven Goran Eriksson.

The honeymoon period continued into the early weeks of the new season as the Blues went five unbeaten but their form deteriorated as the season went on.

However, Pearce did lead City to the FA Cup quarter-finals, where they were beaten by eventual finalists West Ham, but a run of nine defeats in their final 10 games meant the season ended on a low note.

If Pearce's first season was difficult, then his second season was close to disastrous as matters off the field began to make more headlines than those on it.

They started the new season in the same vein of form they finished the last winning just one of their opening six games of the season.

By February, Pearce had taken on the dual role of England Under-21 manager, claiming it would be "absolute folly" to reject such an opportunity.

The decision was greeted coolly by the City board, fans and pundits, who feared Pearce had enough to contend with in his role as City boss.

Goals were proving hard to come by, with £6million signing Georgios Samaras and new arrivals struggling to find the back of the net, leading outspoken midfielder Joey Barton to question the quality of the club's signings.

"You have to face facts. We have not brought quality in. One or two have done all right but not enough to take the team onto the next level," he said.

"We can't gamble on players who have scored six goals in six games in the Pontins League or in Belgium."

Barton had a point - City managed just 10 goals at home all season - the lowest ever recorded in the Premiership.

In March, a dismal run of four straight defeats left City a place above the drop, leading to mounting speculation that Pearce had two games to save his job.

Wins against Middlesbrough and Newcastle ensured a temporary stay of execution but it was not long before Pearce's problems were mounting again.

On May 1, Barton was suspended by the club after a training ground bust-up with Ousmane Dabo which left the French midfielder unconscious.

The incident is under investigation by the police and Dabo is considering legal action, with Barton's future at the City of Manchester Stadium in grave doubt.

Pearce's fate looked similarly grim following his remarks after yesterday's defeat to Spurs.

Asked whether a City takeover could cost him his job, the 45-year-old said: "Whether it is me or not is out of my hands.

"I hope it's me, I've done a reasonable job but I know our shortcomings and plan to address them this summer," he said.

"If it isn't me, I'll move on and manage elsewhere and prove myself elsewhere.

"When there is talk of takeover situations, if that does happen new owners may want to bring their own men in."