Reading conceded a 92nd-minute winner to fall to a 2-1 defeat at Preston on Easter Monday, in what would turn out to be Paul Ince's final game in chargeReading have sacked manager Paul Ince with the club in 22nd in the Championship and without a win in their past eight games.
Ince was appointed on an interim basis in February 2022 before taking on the role permanently last May.
The Royals were deducted six points last week for breaching the terms of a business plan set by the English Football League.
They are a point from safety with five games left after losing at Preston.
Assistant manager Alex Rae has also left the club, with former Reading striker Noel Hunt stepping up from his role as under-21 boss to take interim charge for the rest of the season.
"I would like to thank Paul and Alex for their efforts throughout what has admittedly been a frustrating and exceptionally challenging season so far. We would like to wish them well in their future endeavours," said Reading's head of football operations Mark Bowen.
"The board will work diligently to identify the manager who is the best fit for this football club going forward - a candidate capable of driving it towards a healthier, brighter future.
"However, for the next five games, our only focus is on doing everything we can to survive this season."
Reading dropped to 20th after being handed the points deduction, which came after a previous profit and sustainability rule breach.
They were also given a six-point deduction for the previous breach in 2021, after losing £57.8m between 2017 and 2021.
The Royals have been under a transfer embargo ever since, which former Manchester United and England midfielder Ince had to work under during his tenure.
The club's top scorer this season is Ince's son, Tom, who was signed after leaving Stoke last summer and has nine league goals.
While Reading started this campaign strongly, winning seven of their first 11 games to sit third in the table, they have only won two games out of 14 since the new year and face a battle to stay in the second tier.
