Kevin Blackwell has been appointed as manager of Sheffield United after Bryan Robson turned down the opportunity to become the club's director of football.
The Championship club have confirmed the departure of both Robson and coach Brian Kidd after an unsuccessful nine months with Robson at the helm.
Robson's side won just one league match in seven attempts since the return of Crystal Palace manager Neil Warnock to Bramall Lane and and club plc Kevin McCabe has decided to act.
Robson had met with McCabe and club chairman Terry Robinson in Brussels on Wednesday with the multi-millionaire businessman expected to announce a major shake-up among the management.
The South Yorkshire club have interests in China, Belgium, Brazil and Hungary and it was reported on Wednesday that McCabe's Hungarian business Esplanade Kft had succeeded in acquiring a tender to buy into Ferencvaros.
McCabe held talks with Robson over a new role in the club but confirmed Robson had chosen to bring an end to his nine-month tenure at Bramall Lane where he was given little leeway by fans desperate for a quick return to the top flight.
McCabe expressed his regret, telling the club's official website: "I was keen to see Bryan Robson take up this head of football role but, regrettably, this was not to be and so he departs - along with Brian Kidd - with the best wishes of all at Sheffield United.
"Supporters should not underestimate the sterling and dedicated expertise and time put in by Robson and Kidd in overhauling the whole of the Blades football divisions."
The former Middlesbrough, Bradford and West Brom manager had been under increasing pressure since replacing Neil Warnock in the summer after the club's expected promotion challenge has failed to materialise.
The Blades lie 16th in the Coca-Cola Championship and have won just nine of their 32 matches under Robson this season.
McCabe also announced that club chairman Robinson would also be standing down at the end of the season but will stay on as a director.
"Bryan goes with our best wishes. Over the last two days I have spent a lot of time reviewing the club's football matters," he continued.
"I had hoped Bryan would take up a new role at the club but in the end that was not to be. Kevin and Sam (Ellis) are in until the end of the season when we will take stock.
"They both know the situation and most important of all, know how determined we are to take this club forward. That will include the pursuit of a football supremo to oversee a new football structure at the club."
Blackwell's appointment will be a popular move among many fans who credited him as pivotal in the Blades' 2002-03 season where they reached the semi-finals of both the FA Cup and League Cup to be beaten by Arsenal and Liverpool respectively as well as the play-off final against Wolves.
Blackwell was appointed manager of Leeds in 2004 where he guided the team to the Championship play-off final in 2006 - the same year his old boss Neil Warnock guided the Blades into the top flight.
He left Elland Road in November 2006 and took over at Luton in January 2007, leaving the troubled club - who went into administration - earlier this month.