Allardyce departure follows a newspaper investigation claiming he offered advice on how to “get around” rules on player transfers.
The 61-year-old who only spent 67 days as England manager is also alleged to have used his role to negotiate a deal worth £400,000 to represent a Far East firm.
Confirming his departure, A statement from the England FA reads: “The FA can confirm Sam Allardyce has left his position as England manager. Allardyce’s conduct, as reported today, was inappropriate of the England manager. He accepts he made a significant error of judgment and has apologised. However, due to the serious nature of his actions, the FA and Allardyce have mutually agreed to terminate his contract with immediate effect.