The former Hoop claimed that the Norwegian's dismissal would be a silver lining from the defeat.
Chris Sutton has suggested that if there is any positive to be taken from Celtic's Scottish Cup semi-final defeat to Rangers, it is that it should prove that Ronny Deila is not up to the job at Parkhead, the Daily Record reports.
The Hoops were knocked out on penalties following a game that had seen the Scottish Championship side often dominate play and saw the Gers supporters chant that the Norwegian's job prospects did not look good.
But following the cup exit, Sutton has claimed that Deila was lucky to still have a job beyond the immediate aftermath of the game, and explained how the defeat could prove to be a positive moment if the club sack the boss.
"Rangers fans chanted 'you're getting sacked in the morning' to Ronny Deila," he told the Record.
"I wouldn't have let him last the night. If there is any silver lining to come from the dark cloud of embarrassment that looms over Celtic Park, it's the knowledge people are waking up and smelling the coffee.
"Deila has to go now. And if the short-sighted decision makers at Parkhead had paid attention to the facts staring them in the face for months, Deila would have been out of a job before Christmas."
While the Bhoys are in a commanding position in terms of the Scottish Premiership, they will end the campaign having lifted a maximum of just one trophy - provided that they capitalise on their strong position in the top flight - having failed to make an impression in Europe and falling at the semi-final stage in both domestic cups.
And the way that Rangers made them look like they were the team from the division below at Hampden Park could prove to be an ominous sign ahead of their return to the Premiership next season, so Sutton clearly feels that only a change in the dugout will give Celtic a chance of preventing further Old Firm disappointment.