Assistant-manager Micky Cummins will also leave the club with immediate effect.

Watson joined from Gateshead in January 2019. York were second in what should have been his first full season in charge but was abandoned in March because of Covid-19.

Thanks to pressure from the Minstermen, the authorities agreed to play-offs, but York were beaten in the semi-finals.

They finally moved into a long-awaited new stadium in February, shortly before the 2020/21 season was also abandoned with the team eighth.

John Askey has been appointed interim manager until the end of the season.

Askey is a former Macclesfield Town, Shrewsbury Town and Port Vale manager who joined York`s coaching staff in November to support Watson "on a temporary basis".

A statement on https://www.yorkcityfootballclub.co.uk reads: “After the game on Saturday, there was a conversation with Steve and we have mutually agreed that it hasn’t worked out as anticipated and therefore, we need to part company.

“The Board feels that this outcome will give the club the best possible opportunity of achieving promotion this season.

“We would like to thank Steve and Micky for their contribution to the club and we wish them both well for the future”.