Who will replace Lambert?
Press Association Sport takes a look at possible contenders to replace the Scot in the Villa Park dugout.
Sherwood, 46, had recently been tipped to take the reins at QPR following the exit of Harry Redknapp but talks are believed to have broken down, with the former Tottenham manager now a potential candidate to replace Lambert.
Former Villa stalwart Southgate, 44, is another man who could be keen to take over from Lambert and re-ignite the side's faltering campaign.
Currently in charge of Norwegian side Stabaek, the 56-year-old American expressed an interest in managing Villa back in 2010 after Martin O'Neill's exit.
Warburton, 52, is currently in charge of Championship side Brentford, but could be interested in the Villa post after speculation about his position at Griffin Park.
As well as his experience managing England, Hoddle, 57, has also taken the reins at Swindon, Chelsea, Southampton, Tottenham and Wolves, although his last spell as a boss ended in 2006.