Posh have issued a statement confirming that Ferguson, who has in the past two seasons led the club to back-to-back promotion campaigns, has lost his job as manager at London Road.
"Following a series of meetings with the Manager, Peterborough United and Darren Ferguson have decided to part company with immediate effect by mutual consent, the statement on the club's official website reads.
"The football club would like to thank Darren for his magnificent service during his time at London Road and wish him and his family all the best for the future.
"Peterborough United Football Club wish to assure all its supporters that the perceived delay in announcing the departure of the Manager by mutual consent was entirely due to the confidential terms and conditions that underpinned the agreement which was not approved and finalised until this afternoon."