Relegated Hibernian sack manager Butcher
Butcher took charge at Easter Road last November, leaving his role at Inverness Caledonian Thistle to take the post, but oversaw Hibernian's demotion by virtue of a play-off defeat to Hamilton in May.
The former England international defender won just four of his 25 regular-season games at Hibs, and he has subsequently been relieved of his duties.
In a statement released on the Edinburgh club's website, chief executive Leeann Dempster said: "I have to say that we all regret that this decision had to be made, but during conversation it became clear that a different approach was needed.
"Sadly, for a variety of reasons and perhaps including unfortunate timing, it hasn't worked out for Terry here. That is disappointing for all concerned. I am genuinely saddened that we have had to take this tough decision.
"It may have taken longer than we all would have liked but I felt it was appropriate that we met properly and had a full discussion before any decision was made.
"Now we need to move forward and act to bring in a new manager with the aim of getting us promoted back to where Hibernian belongs, in the top league of Scottish football, from a uniquely competitive Championship.
"Our first aim must be to try to win the league and gain promotion automatically.
"The search now begins to find and appoint the next manager."