Derby chairman Adam Pearson has revealed that the search for Billy Davies' successor as Rams manager is already underway.The former Preston boss left the Premier League strugglers club on Monday following the weekend defeat to Chelsea, with MK Dons boss Paul Ince and former England coach Steve McClaren the early frontrunners.

And chairman Pearson has explained Davies' departure, insisting that the relationship between the club and the manager had completely broken down.

"It is not an easy day, obviously. Things came to an end pretty much this weekend. It was the right time to make a move," he told Sky Sports News.

"I had a positive and good conversation with Billy this morning and it is genuinely mutual on this one.

"We both decided it is of the best interests of Derby County that we move forward onto fresh challenges and fresh management structures.

"Sometimes there just comes a watershed in a relationship, between club and manager where it is best to go our separate ways."

Davies had been quoted saying that he had not been in contact with Pearson for over three weeks; however the Rams chairman insisted that this was not the case.

"We have talked regularly on the phone, we had the last formal meeting about 10 days ago," he said.

"That's not really what this is about and I think Billy and I both realised that this morning. It is about an investment issue that keeps cropping up. It was the right time to make a move."

Pearson went onto explain that a shortlist of potential replacements will be drawn up immediately, while emphasising that the club are not preparing for a season in the Championship.

"We will start the recruitment process immediately. We would like to have somebody in place promptly," he added.

"But we're not going to be hasty in the recruitment process. There will be a shortlist drawn up today. There is no timescale, but it needs to happen sooner rather than later.

"We will find the right manager, and this club will be successful again."

"I want to save the Premier League status. I just told the players that, and I don't want to hear any about this 'we're not good enough to compete at this level'.

"They are [good enough] and I expect them to start this Saturday [against Sunderland]."

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