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16 May 2018, 05:22 | Anna Jefferson
The 63-year-old had more success at Sunderland.
Former Watford boss Marco Silva is the leading candidate to step into the Goodison Park hotseat.
'However, we have made the decision that, as part of our longer-term plan, we will be appointing a new manager this summer and will be commencing this process immediately.
Allardyce, who was briefly England manager in 2016 before returning to club management at Crystal Palace last season, had already reacted angrily to the structural changes at the club prior to his meeting with majority owner Iranian-born British tycoon Farhad Moshiri.
Allardyce was hired after a dismal start to the season under Ronald Koeman saw Everton fearing a relegation battle.
Allardyce took over the reins on November 30 a year ago, six months after leaving a similarly short stint at Crystal Palace. During his tenure, the club was also forced to apologise to Allardyce last month for a survey that was sent to fans asking them to rank their manager's performance on a scale of 0 to 10.
The Premier League subsequently instigated a mediation meeting for the two clubs last month but the issue failed to be resolved, and with the dispute having dragged on for four months the league could be forced to find a conclusion to the issue themselves.
Wayne Rooney's future at the club was reported to have rested on whether Allardyce would be manager next season.
England's all-time top scorer had reportedly agreed terms on a £12.5 million move to DC United in Major League Soccer last week.
Allardyce was presented with an award at an LMA dinner on Tuesday evening for reaching 1,000 games in management.
In a statement Watford said at the time: "The club is convinced the appointment of Silva was the right one and had it not been for the unwarranted approach by a Premier League rival for his services we would have continued to prosper under his leadership".
"They must have been in the pipeline for a considerable time but no-one thought to tell me and my staff".
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