Sam Allardyce has left his position as England manager by mutual consent after just one game in charge of the national team.
Allardyce was filmed advising undercover journalists on how to circumvent rules against third-party ownership, according to the Daily Telegraph.
Video accompanying the report shows Allardyce meeting twice with journalists posing as representatives of a Far East agency who were interested in bypassing rules from the Football Association and FIFA.
"You can still get around it. I mean, obviously, the big money's here," Allardyce said on the video, while also calling the regulations "ridiculous."
The FA can confirm that Sam Allardyce has left his position as @England manager. Full statement: https://t.co/oFu7dMn8CH
- The FA (@FA) September 27, 2016
Former Sunderland boss Allardyce was appointed as Roy Hodgson's successor in July, and he oversaw his first, and only, game in charge as England beat Slovakia 1-0 in a World Cup qualifier thanks to Adam Lallana's late goal.
The FA confirmed that England under-21 manager Gareth Southgate will now take charge of the senior squad for the next four matches against Malta, Slovenia, Scotland and Spain while the search for a permanent manager takes place.
The status of Allardyce-appointed coaches Sammy Lee, Craig Shakespeare and Martyn Margetson has yet to be revealed, indicating they could assist Southgate.
A statement from the FA read: "The FA can confirm that Sam Allardyce has left his position as England manager. Allardyce's conduct, as reported today, was inappropriate of the England manager.
"He accepts he made a significant error of judgement and has apologised. However, due to the serious nature of his actions, The FA and Allardyce have mutually agreed to terminate his contract with immediate effect.
"This is not a decision that was taken lightly but The FA's priority is to protect the wider interests of the game and maintain the highest standards of conduct in football. The manager of the England men's senior team is a position which must demonstrate strong leadership and show respect for the integrity of the game at all times."
The willingness of Allardyce and his adviser Mark Curtis to negotiate a £400,000 pay day to act as a keynote speaker for investment firms in the Far East was not viewed kindly by the FA, who already paid him £3 million a year, despite his belated caveat that he would need to run any deal "past the powers that be."
Allardyce had been in what he gleefully described as his "dream" job for just 67 days, meaning his reign was the shortest of any full-time England manager.
"Further to recent events, The FA and I have mutually agreed to part company," Allardyce said in a statement. "It was a great honour for me to be appointed back in July and I am deeply disappointed at this outcome.
"This afternoon, I met with [FA chairman] Greg Clarke and [FA CEO] Martin Glenn and offered a sincere and wholehearted apology for my actions. Although it was made clear during the recorded conversations that any proposed arrangements would need The FA's full approval, I recognise I made some comments which have caused embarrassment.
"As part of today's meeting, I was asked to clarify what I said and the context in which the conversations took place. I have co-operated fully in this regard. I also regret my comments with regard to other individuals."
The Telegraph said on Tuesday it would "give all relevant transcripts" to both the FA and police as its investigation into corruption in player transfers continues this week.