Everton's Dutch manager Ronald Koeman gestures on the touchline during the UEFA Europa League Group E match between Everton and Lyon at Goodison Park, in Liverpool on October 19, 2017. / AFP PHOTO / Oli SCARFF (Photo credit should read OLI SCARFF/AFP/Getty Images)

Everton manager Ronald Koeman has been sacked by the club after 16 months at the helm.

The announcement came after the Toffees slipped to 18th on the Premier League standings following a 5-2 home defeat to Arsenal.

In a club statement Everton said that they “would like to express their gratitude to Ronald for the service he has given to the Club over the past 16 months and for guiding the Club to seventh place in last season’s Premier League campaign.”

David Unsworth, 44, will take charge as temporary manager.

Unsworth has had a successful stint managing Everton’s U-23’s squad, and is hoping to stake his claim to permanently take over the senior role.

Burnley manager Sean Dyche, former Borussia Dortmund manager Thomas Tuchel, Watford manager Marco Silva and Carlo Ancelotti have all been linked to the job.

Ancelotti is easily the most experienced and highest-profile candidate, having coached Real Madrid, Bayern Munich, Chelsea, Paris Saint-Germain, Juventus and Milan over his esteemed career.

After spending 140 million pounds (roughly 236 million Australian dollars) over the summer transfer window, Everton won only 2 of their opening 9 games in the Premier League, albeit having a difficult schedule.

Former Everton player Leon Osman discussed the vacant position on BBC Radio 5.

“I think we need someone who is experienced, but also understands the club and has a track record of winning things,” Osman said.

“Everton’s expectations have been raised since the new owner took over, we’re now looking at the likes of Carlo Ancelotti.”

Koeman becomes the third manager sacked in the Premier League this season, joining Leicester’s Craig Shakespeare and Crystal Palace’s Frank de Boer.