Premier League - Wolves sack McCarthy after derby drubbing
McCarthy's position was made untenable by a 5-1 home defeat to rivals West Bromwich Albion on Sunday - a result that was greeted with fury by the home fans inside Molineux at the final whistle.
Some fans vented their anger towards the directors box during the game and a couple of hundred demonstrated outside the ground long after the final whistle.
The defeat was just the latest defeat in a woeful run that has seen the Midlands club drop into the bottom three, and the Wolves board felt compelled to act with the club's Premier League status in jeopardy.
A club statement confirmed: "The board took the difficult decision to terminate Mick's contract after a run of form which has seen Wolves pick up only 14 points in the last 22 League games, after a promising start to the season, culminating in yesterday's 5-1 defeat at home to West Bromwich Albion.
"Terry Connor will take charge of team training in the interim until a new manager is appointed.
"The board would like to place on record their sincere thanks and appreciation to Mick McCarthy and he leaves with the very best wishes of everyone connected to the club."
McCarthy was appointed as Glenn Hoddle's replacement at Molineux in July 2006 and led them to the Championship title in 2009, securing Premier League football in the process.
However, this season he has been the subject of continual criticism by disaffected Wolves fans and a run of four consecutive home defeats has resulted in his departure.
He said following Saturday's defeat: "I would think it was one of the most disappointing afternoons of my career.
"I apologise for the performance and I've never done that before. But the way we capitulated in the last half-hour is not associated with my teams."
Former Charlton and West Ham manager Alan Curbishley is the third favourite to take the job with some bookmakers and has wasted little time in saying he would be happy to discuss the role.
"If I get the phone call then obviously I would talk to them," Curbishley told Sky Sports News.
"I have always said I want to get back into the Premier League. My record stands up, it's just I have been out of the game for some time."
Curbishley left West Ham in September 2008 and has worked as a media pundit in the intervening years.