Aston Villa last night bowed to the inevitable when David O'Leary ended his three-year reign as manager. The Dubliner was summoned to Villa Park for the second time in 24 hours at around 4pm yesterday and, after lengthy talks, left the club by mutual consent.

It is understood he will receive a pay-off of around £2 million, a price Villa evidently are happy to pay after the turbulent period that followed the release of a players' statement last Friday which strongly criticised the chairman, Doug Ellis, for his financial cut-backs.

Ellis felt no need to return from his holiday in Majorca for yesterday's meeting, a measure of how strained his relationship with O'Leary had become.

The former Republic of Ireland defender has been holding on to the manager's position by his fingertips ever since Ellis learned of the players' extraordinary statement given to a local reporter at the training ground last week.

The chairman claimed he knew who had put the wheels in motion and set up an inquiry panel to establish how the story evolved.

O'Leary had continued to plead his innocence and denied any involvement when questioned but it was clear his fate was sealed.

He had not anticipated returning to Villa Park after he was questioned by a three-man panel on Tuesday but further interviews with senior members of the first-team squad appear to have been the catalyst behind last night's events.

It had become increasingly apparent O'Leary did not retain the full support of the dressing-room.

His attempts to offer his support to the players at a meeting held at the training ground on Monday, following his own denial that he had been behind the statement, would appear to have carried little weight and it was notable that Thomas Sorensen, one of those called to give evidence to the board, would not comment on the manager's position when he left the training ground yesterday.

O'Leary's exit heralds a new beginning for Villa and their search for a replacement begins immediately. With only four weeks until the beginning of the new Premiership season the board will need to move quickly.

Alan Curbishley is an early contender, as is Martin O'Neill, but both will require assurances over the chairman's plans for the future.