Chelsea's recent dip in form in the Premier League and their struggle to qualify for the knockout stages in the Champions League has been cited as the reason for Di Matteo's exit
A statement on the club's official website on Wednesday confirmed the Italian's departure just six month's after taking over as manager.
"The team's recent performances and results have not been good enough and the owner and the Board felt that a change was necessary now to keep the club moving in the right direction as we head into a vitally important part of the season."
"The club faces a difficult task ahead in qualifying for the knockout stages of the UEFA Champions League as well as maintaining a strong challenge for the top of the Premier League while competing in three other cup competitions. Our aim is to remain as competitive as possible and challenge strongly on all fronts."
"The owner and the Board would like to thank Roberto for all he has done for the club since taking over in March. Roberto helped guide us to a historic Champions League victory and a seventh FA Cup. We will never forget the huge contribution he has made to this club's history and he will always be welcome at Stamford Bridge."
"The club will be making an announcement shortly regarding a new first team manager."
The European champions are now lining up Rafa Benitez as the new first team manager but only on a temporary basis.
Chelsea now prepare to face Premier League champions Manchester City on Sunday.
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