O'Leary in the frame to succeed Reid

Irishman heads Sunderland's wanted list after struggling Wearside club decide to part company with long-serving manager

Sunderland parted company with their manager Peter Reid last night and started moves to make David O'Leary his successor at the Stadium of Light.

Sunderland, fourth from bottom of the Premiership after nine games, want the new man installed in time for their next match, which is at home to their fellow strugglers West Ham on 19 October.

O'Leary has been waiting to return to management since being dismissed by Leeds United in the summer, but Sunderland are not guaranteed to secure the services of the Irishman, who sources say may prefer the challenge at West Ham should Glenn Roeder also becomes a casualty in the fight for Premiership survival.

"I'm gutted for Peter, but I'm an out-of-work manager and I'm happy to talk to anyone," O'Leary said.

The former Arsenal and Leeds manager George Graham could also be on Sunderland's shopping list. "I'm keen to speak to any club whose ambition matches my own," he said.

The Sunderland chairman, Bob Murray, had kept faith with the 46-year-old Reid despite fierce criticism from supporters unhappy at the club's fall in the last two seasons. The Black Cats were the lowest scorers in the Premiership last season with 29 goals, and the problem has persisted. Of the 356 games Reid was in charge of during his seven and a half years at Sunderland, the club have won 159 and lost 99.

Reid's long reign finished after a meeting with Murray which ended with the exit of the manager, who is also a shareholder, together with his back-room team of Adrian Heath and Bobby Saxton.

"In taking this difficult decision it's hard to realise that it has had to come to this, but the club must always come first," Murray said. "Nearly a quarter of the season has gone and we are at the wrong end of the table and can't wait any longer for performances to improve.

"We've invested more than £22m in the playing side in the last nine months but results have not changed for the better since last season.

"Sunderland is totally unrecognisable now to when Peter walked through the door at [former ground] Roker Park in 1995."

"I'm sure Peter's services will be snapped up quickly and he'll be successful again. I have no hesitation in giving Peter a glowing reference, as he's been a great and committed manager to work with."

After Sunderland lost 3-1 at Arsenal on Sunday, leaving them with two Premiership wins, Reid professed himself baffled by his players' performance. "I must be speaking Swahili," he said. "I'll have to take language lessons because they don't understand me at the moment."

The side's form had led to calls for his head from sections of the Sunderland crowd, but it appeared that Murray would stick by him. The pressure was already on at the start of the season and was made worse when the manager was pelted with beer by an angry fan on a pre-season tour of Belgium.

Reid was criticised for not opening the chequebook last term but spent heavily before the transfer window closed to sign Tore Andre Flo from Rangers, Marcus Stewart from Ipswich and Matt Piper from Leicester.

Born in Liverpool, the highlight of Reid's playing career came at Everton between 1982 and 1989. He won 13 England caps, including appearances at the 1986 World Cup finals, before moving into management with Manchester City in 1990.

"Peter will be desperately disappointed. He's given his heart to the club and it's come to an end," John Barnwell, the chief executive of the League Managers' Association, said.

"I think he will lick his wounds, get his breath back and then make a decision. His career is far from finished."