Manager Peter Reid and team Leeds United have parted company, to nobody's surprise.

Reid had been in charge of Leeds, who are heavily in debt and bottom of the English Premier League, since March, but his position became untenable after Saturday's 6-1 thrashing at Portsmouth.

Former player Eddie Gray is taking over as caretaker manager.

A Leeds United statement to the London Stock Exchange on Monday said that after a meeting between Reid and chief executive Trevor Birch, it was "mutually agreed" that Reid step down as first team manager with immediate effect.

It added: "While the board acknowledges that Peter did a sterling job for the club towards the end of last season in keeping United in the FA Premier League, it believes it must not allow this season to reach a point beyond which the club's Premiership status comes under serious threat.

"The recent run of results has clearly been unacceptable. The board therefore concluded that it has a duty to act now."

It added: "Notwithstanding current financial constraints, United is determined to return to its place as one of the top clubs in England and is looking to appoint a new first-team manager who will reflect this determination."

Former Sunderland manager Reid had steered Leeds away from relegation at the end of last season, but was unable to improve their fortunes this term.

Saturday's defeat was Leeds's seventh in their last eight league games and left them rooted to the bottom of the table with only eight points from 12 games.

Reid's departure is the latest twist in a turbulent 18 months at the Yorkshire club, who were champions in 1992 and reached the European Champions League semi-finals in 2001.

Last month Leeds announced record annual losses for a Premier League club of just under £50 million.

The club has debts of almost £80 million and has had to sell off many of its best players over the last 18 months.

Leeds now start their search for a fourth manager in the space of 18 months, with Nottingham Forest's Paul Hart and Sheffield United's Neil Warnock both tipped for a post many view as a poisoned chalice.