Alan Curbishley became the first Premier League manager to leave his job this season after resigning as West Ham manager.
The move comes after a rumoured dressing-room spat between Curbishley and Lucas Neill after the club's 4-1 win against Blackburn Rovers at the weekend.
The Hammers' Australian captain is believed to have told Curbishley that the players had "kept you in a job" by winning Saturday's match, The Independent newspaper reported.
Curbishley endured a fraught spell at the club after saving it from relegation midway through the 2006-07 season, reportedly being denied funds for recent transfers and arguing with players.
West Ham had seemingly prepared for Curbishley's departure by releasing a statement in which it justified the sale of defenders Anton Ferdinand and George McCartney during the transfer window.
It was these moves that Curbishley was reportedly angered by.
"The transfers of Anton Ferdinand and George McCartney along with the release of Freddie Ljungberg were right for the club and decisions had to be taken based on our best long-term interests," West Ham said.
"In the past week, agreement could not be reached with Ferdinand on a new contract to replace his original deal that had just two years left to run, while McCartney handed in a formal written transfer request after failing to resolve his personal reasons for wanting a move away."
