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First-team coach Aaron Danks, appointed before Gerrard arrived, will take charge of Villa’s home clash with Brentford tomorrow.
Explaining Gerrard’s exit, CEO Christian Purslow said: “The Board has come to this decision following a full evaluation of results and performances over the calendar year.
“We were clear when we appointed Steven we set an objective of continuous improvement but that has not been achieved despite everybody’s best efforts.”
Gerrard said last night: “I would like to thank everyone connected to Villa for their support shown to me during my time there.
“To the fans, I owe a debt of gratitude for the way you welcomed me. Villa is a club with a special history, I really wanted to bring back those memorable achievements, unfortunately it wasn’t to be.”