Henk ten Cate has been dismissed from his role as Chelsea's assistant first team coach. The decision to part company with the former Ajax manager, who signed a contract until 2010 on joining Chelsea's backroom last October, was reached at a meeting earlier today.

"Chelsea Football Club can confirm we have terminated Henk Ten Cate's contract," said a statement on the club's official website. "This follows a meeting this morning. As a result of the team management changes at Chelsea FC, and in the light of any forthcoming appointment, it was clear this was the correct decision for all parties. Everybody at Chelsea would like to thank Henk for his contribution since coming to the club last year."

Ten Cate's future had been the subject of intense speculation since the ousting of manager Avram Grant last weekend, but the Dutchman insisted earlier this week that he had received personal assurances about his future from Peter Kenyon, the Chelsea chief executive.

Meanwhile, Luiz Felipe Scolari has emerged as a leading contender to become the next Chelsea manager after Amandio De Carvalho, the vice president of the Portuguese Football Federation, revealed that the Brazilian has been short-listed to replace Grant. "I already know that Chelsea are interested in Scolari," said De Carvalho.

Scolari declined the opportunity to replace Steve McLaren as England manager in 2006. However, his Portugal contract, worth £2m a year, expires after the Euro 2008 finals.