Under the Englishman this campaign, the Blades reached the semi-finals of the League Cup, but they finished fifth in League One and failed to gain promotion through the play-offs.
The news of the sacking of the 49-year-old has come as a surprise to many, including Savage, who has hit out at United for their decision.
Nigel clough sacked what an earth has football come too , saves them from relegation , semi final fa cup, play offs this year !— Robbie Savage (@RobbieSavage8) May 25, 2015
Clough replaced David Weir at Bramall Lane in October 2013 with United in the League One relegation zone.
The Blades finished seventh in the league table in the 2013-14 season and reached the semi-finals of the FA Cup.
Former Nottingham Forest attacker Clough started his managerial career at Burton Albion in 1998, where in 2008-09 he led them from the Conference Premier into League Two.
Clough joined Derby in January 2009, following in the footsteps of his late father, Brian, but the Rams failed to reach the Championship playoffs and he was sacked in September 2013.