President Jim Stynes confirmed at midday that former coach Dean Bailey was told last night his services were no longer required.
He said CEO Cameron Schwab, also the subject of speculation, had accepted the offer of a one-year contract extension. He said the timing of that deal was not related to Bailey's sacking.
Stynes said the Demons would leave "no stone unturned" in their bid to find the best coach, and would not rule out any names including Collingwood coach Mick Malthouse.
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