ESSENDON chairman David Evans says a lack of on-field progress was behind the sacking of coach Matthew Knights on Sunday.

Less than a day after a 29-point loss to the Western Bulldogs, Knights' three-season tenure ended with two years to run on his contract, and with the Bombers in 14th position on the AFL ladder.

Knights took the Bombers to an elimination final last year after finishing 12th in 2008, but faced constant pressure this year as they mustered just seven wins.

It intensified with a 32-point loss to bottom side West Coast in round 16, and club great James Hird's vague interest in Knights' position.

Evans and chief executive Ian Robson confirmed Knights' departure late on Sunday afternoon, just half-an-hour after the news was broken to the players.

Evans said that club members had voiced their discontent with the Bombers' performances this year, but had not sealed the board's decision to sack Knights.

He also denied that board members had threatened to leave if Knights wasn't dismissed.

"This decision wasn't made because of the feedback that we had from members," Evans said. "It was made as a totality of review across the whole club.

"It has not been an easy year on-field for our club, but I do want to say that Matthew has started the process of rebuilding our list and playing many new young players.

"However, it has become very clear ... that we have not made the progress we needed to make this year, and we needed a fresh start going into a new season.

"This lack of progress is the basis of the board's decision today."

Evans said that when Knights took over from Kevin Sheedy, who had coached Essendon for 27 years, the club was "looking backwards".

He beat a host of impressive candidates for the position, including Essendon premiership player Damien Hardwick, who would later win the senior job at Richmond.

Knights, who played 279 games for the Tigers from 1988 to 2002, had contrasting experience to his predecessor but had coached two teams in his own right; Port Adelaide (SANFL) and the Bendigo Bombers (VFL).

Evans said that Knights had shown grace under pressure in his time as coach, and defended the contract extension he was granted in September last year.

"At all times, Matthew has conducted himself at our club with the utmost passion, commitment and courage," he said.

"We are a club used to success on and off the field, but we do face big challenges in the coming period.

"At that point in time (of the re-signing), the board felt it was the right thing to do for the club. We today have made a decision that we think is in the best interests of the club."

Robson said that Essendon would release details of the process to replace Knights, and that the club was after the "best coach available".

Hird has retracted his interest, leaving Port Adelaide premiership coach Mark Williams and Knights' assistant Alan Richardson as the frontrunners for the position.

"We're looking forward to welcoming applications. We're not going to rule anyone in or rule anyone out," Robson said.

"In an ideal world, we would like to have clarity around our coaching group by the start of trade week ... but we won't rush the decision.

"We haven't sounded anybody out. We've had a number of conversations directly with prospective assistant coach candidates or their managers in recent weeks."

However, Robson said the club would be disappointed to lose Richardson, who is in contention for the Power job.

"We certainly wouldn't stand in his way," he said. "Whether or not he now sees himself as a candidate for this role is a matter for Alan."