Joe Kinnear has stepped down from his position as Newcastle United's director of football, the Premier League club announced late on Monday.
The 67-year-old was appointed on a three-year contract in June last year and given responsibility for the club's transfer activity, but he made only two loan signings -- Loic Remy and Luuk de Jong -- during his tenure.
Newcastle's fans were also angered by the club's decision to sell star midfielder Yohan Cabaye to Paris Saint-Germain last week without bringing in a replacement.
"Newcastle United can confirm that Joe Kinnear has this evening resigned from his position as director of football with immediate effect," Newcastle said in a statement.
"The club will be making no further comment."
Kinnear previously spent five months as manager of the northeast club, before stepping down due to illness in 2009, and was an unpopular figure with a large body of Newcastle supporters.
He launched his managerial stint at the club with a foul-mouthed attack on newspaper journalists during a press briefing and was criticised for making grandiose claims about himself upon returning to Newcastle last year.
"I heard a silly comment of what can I attract? I can open the door to any manager in the world, anyone; that's the difference," he said at the time.
"I've spent my whole life talking to (former Manchester United manager) Alex Ferguson, week in, week out. What would you do?
"I can pick the phone up at any time of the day and speak to (Arsenal manager) Arsene Wenger, any manager in the league. In all the divisions."
Newcastle lost 3-0 at home to derby rivals Sunderland on Saturday and are currently in eighth place in the Premier League table, having finished 16th last season.