Australian A-League side Newcastle Jets said Monday they had axed coach Gary van Egmond, just days after losing to bottom team Melbourne Heart.

"The Newcastle Jets and Gary van Egmond have agreed a mutual termination of his contract as head coach of the Jets effective immediately," a statement said.

The Jets are still in finals contention, sitting in seventh position on the 10-team A-League ladder, but have taken just four points from the last 18 available and Friday's 3-1 defeat to Melbourne Heart appears to have been the final straw.

"After not qualifying for the A-League finals series for the last three years, this is a vitally important season for the club and and both parties," Jets chief executive Robbie Middleby said in the statement.

"The club and Gary agree the team requires a new voice and direction to take us forward."

Middleby said van Egmond had made a lasting contribution to the Jets, winning a championship in his first term as manager and helping to put together a squad of some of the best emerging talent in Australia.

Former Socceroo Clayton Zane has been appointed interim head coach, while Craig Deans will remain as an assistant coach.