Sale director of rugby Bryan Redpath has been relieved of his position at the club, with Steve Diamond taking over for the foreseeable future.
Redpath had been in the job for just five months after leaving Gloucester in controversial circumstances at the end of last season.
He has been offered a position as backs coach, which he is understood to be considering.
The club's chief executive Diamond will take charge of the team for Friday's crucial Premiership clash against fellow strugglers London Irish at Salford City Stadium.
Sale have lost all seven of their league games this season - the worst start in the club's Premiership history - and are currently eight points adrift at the bottom of the table.
John Mitchell, the former All Blacks coach who has been working as a consultant at Sale in recent weeks, is expected to be named as Redpath's permanent successor.