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Published 20:58 28 Sept 2016 BST
Updated 20:59 28 Sept 2016 BST
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The 61-year-old had faced FA chiefs in a grilling at Wembley on Tuesday night after the embarrassing Daily Telegraph allegations broke.
The Daily Mail claim he was subjected to an 'intense interrogation' by FA chairman Greg Dyke and chief executive Martin Glenn - but the paper claims Glenn and FA technical director Dan Ashworth were reluctant to lose the manager they appointed back in July.
But time was called on his nascent England tenure which saw him manage the Three Lions for a single game against Slovakia.
He leaves his job with a figure of more than £1m, and according to the former England boss it contains a confidentiality clause. Not bad for 67 days works.
Gareth Southgate now steps up as England caretaker boss for the next four international fixtures although it's unclear yet whether he will be offered the role full time.
What's next for Allardyce after this scandal is less certain, although it's believed he's looking for a route back into management either in the Premier League or abroad.

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