Steve McClaren was sacked as England [Images] head coach on Thursday following the team's failure to qualify for the European Championship finals next year, the Football Association confirmed.

McClaren's reign ended after the 3-2 defeat by Croatia on Wednesday crushed England's hopes of qualifying for next year's European Championships

"At a meeting this morning the FA board unanimously decided to terminate the contract of Steve McClaren with immediate effect," FA chairman Geoff Thompson told a news conference.

"The Board agreed to a full root and branch examination of the whole England set-up with immediate effect."

The FA said it had also terminated the contract of assistant coach Terry Venables.

England needed a draw against Croatia to seal a place in Euro 2008 [Images] but defeat means they will be missing from a major finals for the first time since the 1994 World Cup.

A 10-man FA board met from 8:30 a.m. for an emergency meeting on Thursday to discuss McClaren's future. McClaren had said on Wednesday he would not resign.

McClaren was appointed in May 2006 and took over from Swede Sven-Goran Eriksson after last year's World Cup in Germany [Images] where England reached the quarter-finals.

Speculation is now turning to who the FA will choose to lead the qualification for the 2010 World Cup which begins next year. Former Chelsea manager Jose Mourinho was quoted as 7-2 favourite with bookmakers.

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