Jack Del Rio told reporters that he was sacked after Sunday's loss to the Chiefs, according to Steve Wyche of NFL Network.
Del Rio's Raiders ended the season with a massive thud, losing 30-10 in Los Angeles. After going 7-9 in his first year, the team jumped to 12-4 last season and reached the playoffs.
The Raiders followed that up with one of the most disappointing seasons in the NFL.
Davis has always been intrigued about a second stint with Gruden but it seemed unlikely the franchise would be in for another change heading into this season. This is a real situation to monitor, with the Raiders desperate to land Gruden after canning Del Rio and hoping that the one-time Super Bowl victor can reinvigorate the Raiders as they head to Las Vegas.More news: Powerball, Mega Millions jackpots soar past $300 million
Del Rio had been the ninth coach in Oakland since Gruden left but the only one to get the team to the playoffs.
Earlier on Sunday, it was reported that Gruden was vetting coordinators and former players to take spots on his coaching staff. Under first-year coordinator Todd Downing, the group appeared to take a step back, particularly Carr and receiver Amari Cooper.
"It was an honor for me to coach this team.this is a results based business", Del Rio told the media.
They were the upstarts previous year and were hot going into the playoffs until Derek Carr busted his ankle.