(CNN) -- Tottenham Hotspur acted swiftly after their worst home defeat in 16 years to dispense with the services of manager Andre Villas-Boas, the English Premier League club announced Monday.
Liverpool's 5-0 thrashing of Tottenham Sunday left the north London club in seventh place, five points below the Champions League places and eight adrift of leaders Arsenal.
It followed a 6-0 loss to Manchester City last month and a tally of just 15 goals in 16 EPL games this season.
"The club can announce that agreement has been reached with head coach, Andre Villas-Boas, for the termination of his services," read a short statement on the Tottenham website.
"The decision was by mutual consent and in the interests of all parties. We wish Andre well for the future. We shall make a further announcement in due course."
Villas-Boas, 36, spent 17 months in charge of Tottenham, taking over from Harry Redknapp before the start of last season.
Inspired by Gareth Bale, Tottenham achieved their best ever EPL points tally of 72, but narrowly missed out on a Champions League place to their arch-rivals Arsenal.
Bale's world record sale to Real Madrid in the transfer window preceded a spending spree by Tottenham as they invested a reported £105 million ($171 million) on new players.
Results have been mixed, with a 100 per cent record in qualifying for the last 32 of the Europa League -- where they have been drawn against Dnipro Dnipropetrovsk -- and progress to the quarterfinals of the English League Cup with a match against West Ham United Wednesday.
But the pressure began to build after a sorry display against Manchester City, combined with earlier disappointing EPL home defeats to West Ham and Newcastle.
Sunday's reverse, inspired by Luis Suarez, left Villas-Boas in an unenviable position, although he was defiant to the last.
"The call to make that decision is not mine because obviously I won't resign and I'm not a quitter," he told gathered reporter after the Liverpool match.
"The only thing I can do is work hard with the players to get them back on track. This is a top-four squad but in our Premier League form we are not there," he admitted.
Villas-Boas previously spent nine months in charge at Chelsea before owner Roman Abramovich replaced him with Roberto Di Matteo.
He had forged his reputation and was spoken of as the "new Mourinho" by leading Porto to the Europa League title and the Portuguese league and cup double in the same season.
Villas-Boas becomes the fifth EPL manager to lose their job this campaign, following Paolo Di Canio (Sunderland), Ian Holloway (Crystal Palace) and Martin Jol (Fulham), while West Bromwich Albion parted company with Steve Clarke Saturday.
Russia manager Fabio Capello, the former England head coach, has been installed as an early favorite by British bookmakers.
Capello's former assistant with England at Roma and Real Madrid, Franco Baldini, is currently Tottenham's director of football.
Tottenham later announced that former players Tim Sherwood and Les Ferdinand would take charge of first team affairs in the interim, assisted by Chris Ramsey, who is head of player development.
Spanish La Liga side Valencia also parted company with their coach Monday after a poor weekend result, losing 3-0 to high-flying Atletico Madrid.
Miroslav Djukic was relieved of his duties after only six months as the defeat left them 10 points adrift of Athletic Bilbao, who occupy the final Champions League spot.
Like Villas-Boas, Djukic had guided his team into the last 32 of the Europa League, where they will face Dynamo Kiev, but their league form has been indifferent.