But having now given Allardyce the boot, Everton will need to cough up the 12 months left on his contract.
Allardyce's backroom team of Sammy Lee and Craig Shakespeare will also depart.
Starsport revealed yesterday that Allardyce would be sacked this week and the club have now confirmed his departure.
Allardyce lasted seven months at Everton after signing an 18-month deal with the northwest club in late November when it was near the relegation zone.
Everton end ties with Allardyce
Sam Allardyce has been sacked by Everton after guiding the club to an eighth-placed finish.
As has been stated, the former Watford boss is the current favourite to take the Goodison Park post.
The decision - Everton were actually 13th, five points clear of the bottom three by the time Allardyce took charge - has been debated ever since. The Hornets even made a complaint to the Premier League, which is yet to be resolved. One thing significantly attention-grabbing to notice within the case of the highly-rated 40-year-old is that he was a childhood Everton fan.
Sullivan has reportedly already held talks with Shakhtar Donetsk manager Paulo Fonseca, while he remains a long-term admirer of Newcastle's Rafael Benitez.
Mikel Arteta may replace Arsene Wenger
Arteta has been heavily touted with landing the role at Arsenal since it was announced that Arsene Wenger would be leaving the club.
Evertonians tolerated his arrival but did not welcome his receiving an extra year on his contract, demanding the club pursue a manager perceived as more ambitious in style at the end of this campaign.
"We are already taking steps to identify and recruit the manager we believe can take West Ham United forward in line with our ambitions".
Bournemouth boss Eddie Howe, a lifelong Everton fan, has also reportedly emerged as another potential target.
In the first eight games of the season Watford played some of their best football in years, with dominating performances against established Premier League sides coming from a club who just a few years ago were flirting with administration and third division football.
Preakness Stakes 2018: Start time, odds, and where to watch
Justify , the victor of the 144th Kentucky Derby , is headed to Pimlico to get ready to run for a chance at the triple crown . Headed into the post draw, CBS Sports had Justify a heavy favorite at 2-5, with Good Magic (7-2) and Quip (16-1) behind.
Whoever takes over next at Everton, this summer promises to be another exciting and change-filled one for long-suffering fans of the club from Merseyside.
Fonseca was another who was linked with the job in November before Allardyce was appointed.
Trailers for 'The Neighborhood,' 'Magnum PI' and more new CBS series
Executive producer Dick Wolf's new crime drama is set in NY and stars Jeremy Sisto, Zeeko Zaki, Missy Peregrym and Connie Nielsen. A procedural from "Law & Order" producer Dick Wolf and writer Craig Turk ("The Good Wife") set at the bureau's NY office.