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The announcement came late this evening just hours after chairman Stewart Till had given The Lions boss the dreaded vote of confidence. But after the 4-0 defeat away to Carlisle at the weekend, Donachie's position at the club became untenable, with supporters voicing their dissatisfication ever louder.
"This decision was taken with a heavy heart,"said executive deputy chairman Heather Rabbatts. "We all love and deeply admire Willie Donachie."
"We were desperate for him to bring us the success he so craved," Rabbatts continued.
"He will be greatly missed by us on a personal level but, as at the same stage last season, decisive action was necessary in the long term interests of the football club."
Donachie took over from Nigel Spackman in September 2006 after a similarly poor start to the season and after leading The Lions to the verge of the play-offs, hopes were high for this season.
Defender Richard Shaw takes charge for this Saturday's game away to Gillingham with Colin West assisting.