The 42-year-old former Scotland star, born in Leeds, had assumed leadership duties in September.
However, after to Saturday’s 4-0 home loss to Aberdeen, his team dropped to ninth place in the Scottish Premiership, missing out on a top-six finish.
Following the game at Easter Road, several supporters staged a sit-down protest. However, Montgomery asked for patience, pointing out that the club’s owners were aware that he needed to make changes to his squad this summer.
The Gordon Family did, however, make the following remark in a club statement: “As a board, we did not make this decision lightly; rather, we felt it was necessary to move the team forward.”