Aston Villa manager David O'Leary has left the club by mutual agreement, the Premier League team announced today.

O'Leary is stepping down after an internal inquiry was set up by the board into last week's statement allegedly from the first-team squad criticising chairman Doug Ellis.

'Although no misconduct by the manager, David O'Leary was uncovered, as a result of the investigation, it has been agreed that an amicable parting of the ways was in the best interests of all parties,' Villa said in a statement.

'Accordingly, a compensation package reflecting the situation has been established and it has been mutually agreed to terminate the contract of David O'Leary, with immediate effect.'