The 61-year-old has officially had his employment with the Football Association of Wales terminated by mutual consent.

The decision was announced jointly by Toshack and the FAW at a press conference this afternoon.

Toshack's position had been the subject of considerable scrutiny since his side were beaten in their opening Euro 2012 qualifier in Montenegro last Friday.

FAW chief executive Jonathan Ford read a prepared statement saying: "The Football Association of Wales wishes to announce Mr John Toshack, Wales national team manager, and the association have mutually decided to cease his employment with immediate effect.

"The FAW will make an announcement on future plans in due course.

"The association would like to place on record their gratitude for John for his work over the past six years.

"The strides that have been made to develop a new, young, dynamic squad are greatly appreciated.

"Everyone concerned at the FAW is convinced the side has a great future thanks to the foundation stones laid by John."

There had been speculation that Toshack might continue for next month's qualifiers against Bulgaria and Switzerland while the FAW sought a successor but that idea was ruled out.

Toshack revealed he had agreed with the FAW earlier this year that his position should be reviewed after those two games anyway.

Toshack said: "I was quite prepared to go on for the next two matches.

"Even after the disappointment of the game in Montenegro that was still the way I felt.

"But we have come to the agreement that it may be better for everyone concerned if a change was made now.

"Now a decision has been made hopefully they will be able to get some positive results in these next two games.

"If results were to go against Wales I would have preferred that to happen with me still in charge. I think that would have been better for everybody."

Toshack revealed he had felt the need to set a date to review progress after being disappointed by the attitude of some players for last May's friendly in Croatia.

Wales travelled to Osijek for that game, which they lost 2-0, with a threadbare squad due to the unavailability of a number of players and a raft of withdrawals.

Toshack said: "The Croatia game at the end of May disappointed me.

"We worked hard to get that preparation game with a view to the fact we were playing Montenegro, but to have 14 players missing spoilt things a bit.

"Four of them were in the play-off final but I do think some of the others could have been there.

"That was when I spoke to the president first of all about reviewing things after these first three games.

"I still would have been prepared to do the next three games but it is generally felt a change now would be in the best interests of everyone."

Reports that Toshack was about to resign began to appear at the weekend, after the team's return from their 1-0 loss in Podgorica.

Yet Toshack claims a decision has only been made in the past day as he travelled to Bulgaria on Tuesday to watch their group game against Montenegro.

The former Real Madrid boss said: "I wouldn't have gone to Sofia if I was thinking along the lines of finishing.

"I was prepared to go on for these next two matches at least."

Wales do not play again after their October double header until they face England in March.

Toshack added: "If any decision needed to be made it could have been made in that five-month gap.

"Anyone new coming in would have had a bit more time to do what they wanted to do."

The FAW say they will announce details of their plans to appoint a successor in due course.

Toshack, after a brief spell in charge in 1994, returned to the Wales helm in 2004.

Since then he has overseen 21 victories in 53 full-cap internationals and brought through a new generation of players.

He has awarded 43 new caps as the likes of Ryan Giggs, Robbie Savage, Gary Speed, Jason Koumas and Simon Davies have been replaced by younger players.