The inside story of Andre Villas-Boas's doomed regime

Roman Abramovich personally sacked Andre Villas-Boas yesterday (Sunday) and placed the Portuguese's assistant, Roberto Di Matteo, in charge of Chelsea until the end of the season.

Chelsea will then step up their efforts to recruit Barcelona's Pep Guardiola or, possibly, their former manager and Real Madrid coach, Jose Mourinho, who will be charged with rejuvenating the squad in the way that Abramovich finally deemed was beyond Villas-Boas.

Villas-Boas has had the remainder of his contract paid up in full, a sum believed to be around pounds 8?million. The cost to Abramovich of sacking Carlo Ancelotti and hiring and firing his Portuguese successor has been more than pounds 35?million with Chelsea's recent accounts showing the change of manager last summer cost pounds 28?million.

Although Villas-Boas has been sacked, just eight months after arriving at the club, it does not mean that Abramovich will reverse his plans to overhaul the playing staff who he also blames for the underperformance. The future of the likes of Frank Lampard, Ashley Cole, Didier Drogba, Florent Malouda and Salomon Kalou will be decided in the summer. It is thought they, and others, could leave as Chelsea contemplate a radical change with another new manager.

At least Villas-Boas was - unlike his predecessor Carlo Ancelotti - afforded a face-to-face meeting with Abramovich, who arrived at Chelsea's training ground yesterday morning with his trusted lieutenant and club director Eugene Tenenbaum, and chief executive Ron Gourlay.

Villas-Boas had conducted training, the day after the 1-0 away defeat to West Bromwich Albion, which left Chelsea with just three wins from their last 12 league games, and was then called into a meeting with Abramovich, who informed him of his decision. Abramovich then told the first-team squad that Di Matteo would be the interim manager for the rest of the season, although this decision may be reviewed if results do not improve. The new arrangement starts with tomorrow's FA Cup fifth-round replay away to Birmingham City and Di Matteo will not speak to the media today, as he prepares his team. Chelsea also face a desperate fight to finish in the top four and qualify for next season's Champions League.

The fact that Abramovich met Villas-Boas face-to-face is testimony to the regard the Russian billionaire holds him in and he is understood to be upset that things did not work out with the Portuguese at the helm.

The only other manager he has sacked personally is his friend Avram Grant, who was called to the owner's home after the 2008 Champions League final. Claudio Ranieri, Luiz Felipe Scolari, Ancelotti and even Mourinho were not afforded that courtesy.

But then Villas-Boas was selected by Abramovich, rather than recommended to him by agents, executives and advisers. The Chelsea owner felt sure the Portuguese could emulate the achievements of his former mentor, Mourinho. Such was Abramovich's desire to employ Villas-Boas that he paid pounds 13?million to release him from his contract at Porto last summer, when he could have waited 12 months and hired him for free.

Villas-Boas was awarded a three-year contract but although he was given a very tough remit to rebuild an ageing squad and get the team playing more attractive football, he was not allowed to bring in his own backroom staff and often appeared isolated.

Instead he was asked if he could work with Di Matteo, the former West Bromwich Albion manager, who will now succeed him for the next three months. Abramovich had been mulling over his options for some time as the team's results deteriorated. It is understood he decided he might have to make a change following the 2-0 away defeat to Everton on Feb 11 after which discussions took place as to whether Rafael Benitez should be hired. That intensified further following the 3-1 Champions League defeat away to Napoli.

Yet Abramovich only wanted a short-term solution while the former Liverpool manager angled after a longer-term contract. Benitez is also deeply unpopular with Chelsea fans because of the bad blood that existed between the clubs when the Spaniard was in charge at Anfield, and the football tactics that he favoured.

Although Abramovich was attracted to Benitez's disciplined approach, and hoped he could also get the best out of Fernando Torres, he decided against holding formal talks. It is understood the Chelsea owner also considered approaching Gianfranco Zola. In the end Chelsea concluded it would be simpler to put Di Matteo in charge and see whether the Chelsea players respond.

Guus Hiddink would have provided an ideal short-term solution, but he had already decided to accept the euros 10?million-a-year net of tax he will earn as coach of Russian club Anzhi. Abramovich had strongly considered hiring Hiddink last summer but concluded then that he would not make the necessary changes to the squad, such as phasing out some of the old guard, to take Chelsea forward.

If Chelsea's fortunes do not improve it is possible Di Matteo could also be shunted out as Abramovich has made it clear to club -officials - and players - that he will not countenance failure to secure Champions League football for next season.

In a statement on the club's website, Chelsea said: "Unfortunately the results and performances of the team have not been good enough and were showing no signs of improving at a key time in the season. The club is still competing in the latter stages of the Uefa Champions League and the FA Cup, as well as challenging for a top-four spot in the Premier League, and we aim to remain as competitive as possible on all fronts.

"With that in mind, we felt our only option was to make a change this time."