David Moyes was said to be watching Derby County at the weekend.
A statement on the club's official website explained the club was unhappy with the progression of the team and poor results in recent weeks.
Academy manager Darren Wassall has been appointed in his place until May.
The Mirror claim former Leicester City boss Nigel Pearson and Birmingham manager Gary Rowett are contenders to take over at the end of the season.
One manager who the paper claim is not interested is former Manchester United and Everton boss David Moyes, despite being in attendance at Craven Cottage at the weekend.
The report states: "David Moyes was in the stands on Saturday as Derby, who have not won in the league since Boxing Day, were held 1-1 at Fulham.
"But the Scot has distanced himself from the vacancy."
Moyes is out of work after being fired by Spanish side Real Sociedad earlier in the season, and has indicated a desire to get back to management if the offer is right.
Derby's next fixture is a winnable home game against MK Dons, which gives them the ideal opportunity to get back to winning ways.