The Scot's position at Ewood Park was under intense scrutiny last season following the team's poor showing in the Premier League.
His future was thrown into further doubt when the team was relegated from England's top flight earlier this month.
Having flown back from India in the early hours of this morning after holding talks with the club's owners, the 44-year-old is believed to have been relieved of his duties, according to Sportingintelligence.com.
However, in a twist sure to anger the majority of Rovers fans, he has been linked with a switch to another role within the club.
Kean was appointed as manager of Blackburn in December 2010.