Worcester director of rugby Dean Ryan has been released from his contract and will leave his role immediately, the Aviva Premiership club have announced.
Head coach Carl Hogg will be in charge of first-team affairs.
Just three days ago the club announced that Ryan's budget for players would be increased by 25 per cent. That followed reports that the former England forward was unhappy with the amount of money at his disposal.
Warriors chief executive Jim O'Toole said Ryan's departure had nothing to do with money, and he dismissed reports that Ryan is on his way to Bath to become director of rugby there.
Asked if cash for players was the issue, O'Toole said: "That's 100 per cent incorrect, the rugby department will see a 25 per cent uplift in rugby spend.
"There's no shortage of money for players coming in, you will have seen the major signings of Ben Te'o and Jackson Willison and others. We are fully committed to the salary cap and we will spend exactly what we're entitled to spend to attract top-class talent to this club."
The Bath job is available after Mike Ford's exit, and although O'Toole would not confirm whether the 50-year-old had signed an agreement not to move to The Rec, he insists Ryan will not be going there.
He said: "I wouldn't dream of discussing contractual matters but he will not be at another Premiership club, I want to make that clear, he will not. We want to move on.
"I want to make it clear to all of our supporters and stakeholders the decision for Dean to depart was driven from his side.
"He made it very clear over the last few weeks he no longer wished to be a day-to-day director of rugby.
"The situation escalated this week when, at a board meeting on Tuesday afternoon, he made it crystal clear he no longer wished to be director of rugby at this club."
Worcester finished 10th in the Aviva Premiership last season. Ryan joined Worcester in 2013 but the club was relegated in his first season.
He took them straight back up, and kept them up last season. He has already recruited heavily for next season, with England centre Te'o a high-profile signing.