Manager Paulo Sergio is leaving Hearts after rejecting the offer of a new contract.
The Clydesdale Bank Premier League club confirmed that talks over a new deal had broken down with the 44-year-old Portuguese.
A Hearts statement read: "Heart of Midlothian FC today (Thursday) announces that it has started the search for a new manager after Paulo Sergio did not agree to the terms proposed to him by the club."
It continued: "The club had been hopeful recent negotiations with Sergio would have a successful conclusion but he has opted not to extend his stay at Tynecastle.
"The club has now commenced the process of putting a new coaching team in place which is capable of building on the success of the William Hill Scottish Cup victory over Hibs."
Sergio took up the reins at Tynecastle last August and last month led the team to Scottish Cup glory, beating Edinburgh rivals Hibernian 5-1 at Hampden.
First-team coach Gary Locke will stay at the club and be part of the new coaching set-up.