The club will be making an announcement shortly regarding a new first team manager.
Chelsea Football Club has parted company this morning with manager Roberto Di Matteo.
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.
Chelsea manager Roberto Di Matteo insisted he did not believe Terry capable of discrimination.
Di Matteo said:
European football's governing body UEFA could take action after claims that racist chants were made at Thursday night's match between Tottenham and Lazio at White Hart Lane.
Three Spurs players were apparently targeted by some of the Italian club's supporters.
It has also emerged that a Chelsea player has also been racially abused. Chelsea manager Roberto Di Matteo and Arsenal manager Arsene Wenger have said racism in football must stop.
Chelsea striker Daniel Sturridge:
In a statement Daniel Sturridge praised the care he had received from Chelsea's medical staff and staff at St Mary's Hospital Paddington.
He said: "Thankfully I'm starting to feel a lot better and I'm optimistic of being able to make the Olympics."
Chelsea manager Roberto Di Matteo has confirmed striker Daniel Sturridge has viral meningitis.
At a press briefing at Chelsea's training ground he said the striker was taken ill over the weekend.
Chelsea are receiving hourly updates on the striker's health and say the club's doctors have been with him since he was taken ill.
"What matters is he gets well soon", said Di Matteo, who said he hoped he would still be able to play in Team GB's Olympic football team.
"We will be monitoring him on a daily basis but the fact that he is feeling better is very positive, I'm optimistic that he will recover and will be able to join the team", Di Matteo said. Sturridge remains in hospital.
Chelsea's Interim Manager Roberto Di Matteo believes a defeat against Tottenham tomorrow would make their chances of qualifying for next season's Champions League very difficult. The Blues are five points behind fourth-placed Spurs in the Premier League table.
Chelsea will play their first match with new caretaker manager Roberto Di Matteo in charge tonight, as they take on Birmingham in the FA cup fifth round replay.
The assistant manager has been put in charge until the end of the season after the sacking of Andre Villas-Boas.
Coverage begins at 19:30 on ITV1.