Paraguay have parted company with national team coach Francisco Arce, the country's football association president has said.
Arce, 41, took charge of Paraguay last year following the resignation of Gerardo Martino who stepped down soon after leading his side to the Copa America final, where they lost to Uruguay.
Paraguay, who under Martino also reached their first-ever FIFA World Cup™ quarter-final in South Africa in 2010, have suffered a dismal start to their Brazil 2014 qualifying campaign, and currently lie second bottom of the CONMEBOL group having picked up just four points from their opening five matches.
Their latest setback came on Saturday when they were beaten 3-1 in La Paz by a Bolivia side who had previously earned only one point from five games.
Paraguay football association (APF) president Juan Angel Napout told reporters at a press conference: "We are going through a difficult moment for us. Analysing the situation, the executive committee have decided to terminate the contract of the coach Francisco Arce."
Napout said the APF were in discussions about Arca's replacement and that an announcement would be named in due course.
Paraguay's next scheduled match is a friendly with China in August before they resume their FIFA World Cup qualifiers against Argentina in September.