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Sale director of rugby Bryan Redpath has been relieved of his position at the Aviva Premiership's bottom club.
Redpath had been in the job for just five months after leaving Gloucester in controversial circumstances at the end of last season.
He has been offered a position as backs coach, which he is understood to be considering.
The club's chief executive Steve Diamond will take charge of the team for the rest of the season, starting with Friday's crucial Premiership clash against fellow strugglers London Irish at the City of Salford Stadium.
Sale have lost all seven of their league games this season - the worst start in the club's Premiership history - and are currently eight points adrift at the bottom of the table.
Redpath took over at Sale in June, signing a four-year deal, after leaving Gloucester.
The appointment of the 41-year-old former scrum-half, who played for the north west club between 2000 and 2005 and was capped 60 times by Scotland, was part of a radical overhaul of Sale over the summer as they left Stockport for the City of Salford Stadium.
Big-name signings including Danny Cipriani and Richie Gray followed, but the positive results have not, with only a single victory this season - a Heineken Cup win over Cardiff Blues.