The 46-year-old was axed after a run of games that saw the Championship outfit slump to 18th place in the table on their return to English football’s second tier.
Coyle, who left Burnley in January 2010 to succeed Gary Megson at the Reebok Stadium, initially saved the club from the drop before they succumbed to relegation last term.
Speaking after his dismissal, Coyle said he had no hard feelings towards the club, whom he believes have all the right ingredients to prosper.
“It’s a hugely disappointing day for everybody,” Coyle said. “We have worked very hard for long hours to put a plan in place at the football club for years to come.
“Whoever comes in is going to be a very lucky person to come into a wonderful football club, which has a structure in place that will benefit the club for many years to come.”
Coyle said he had no ill feeling towards Phil Gartside after the Trotters chairman called time on his reign. “I have always called it straight and the bottom line is they have decided there was going to be a change,” he said. “Let’s tell it as it is and that’s what happened. I wish them nothing but the best. Phil Gartside was my chairman and he is someone that I hold dear and I always will.”
Academy manager Jimmy Phillips and head of academy coaching and development Sammy Lee will take temporary charge of the first-team squad.
Former Wolves and Republic of Ireland boss Mick McCarthy is the current favourite to be Coyle’s permanent replacement.