The Parramatta Eels have sacked coach Daniel Anderson with a year left on his contract.

The NRL club ended weeks of speculation about Anderson's future by issuing a release on Sunday night confirming the decision to terminate the 43-year-old's contract.

The statement says the decision was made after an extraordinary board meeting was called on Sunday.

Anderson's position was reported to have become untenable after a review of the club's 2010 season, where the 2009 grand finalists failed to make the finals, suggested the Eels would be best served with a new coach.

"After a strategic review into the football operations and team performance, the board determined that the team did not make the progress this year that it should have," the statement said.

"Moving forward on that basis, the board felt the club would be best served with a new coach."

Anderson, who has also coached the Warriors and English Super League side St Helens, had been at Parramatta for just two seasons.

He led the club on a remarkable charge to last year's grand final only to lose to Melbourne, but came under increased pressure throughout 2010 amid reports of rifts with star fullback Jarryd Hayne and the team's inability to secure a finals berth.

New Zealand's World Cup winning coach Stephen Kearney has been widely tipped as Anderson's likely successor but the club statement said a decision had yet to be made.

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