Keates, who was in the early stages of the second year of a three-year contract at Banks's Stadium, had seen his side slip from the upper echelons of the table in the early stages of the season to sit in the dropzone zone with just five games remaining.
Walsall Football Club have tonight parted company with Manager Dean Keates with immediate effect.
The club would like to place on record its thanks to Dean for all his hard work and dedication during his time with the Saddlers and wish him well for the future.
Bescot Banter understands that there have been a series of lengthy meetings between club Chairman Jeff Bonser, Chief-Executive Stefan Gamble, and Secretary and Director Dan Mole held at Banks's Stadium in mid February, with club officials initially opting to give Keates more time to turn things around.
However, following Saturday's defeat to Oxford United, the board have taken the decision to sack the Walsall-born boss and begin the search for a new manager with the hope of returning the team to form in time to avoid dropping to the fourth tier of English football.
The Saddlers have lost all five of their most recent league outings and face the very real prospect of relegation should results continue to go against them.
It is understood that first-team coach Martin O'Connor will take over as caretaker boss until a new manager is installed.
However, following Saturday's defeat to Oxford United, the board have taken the decision to sack the Walsall-born boss and begin the search for a new manager with the hope of returning the team to form in time to avoid dropping to the fourth tier of English football.
The Saddlers have lost all five of their most recent league outings and face the very real prospect of relegation should results continue to go against them.
It is understood that first-team coach Martin O'Connor will take over as caretaker boss until a new manager is installed.