The former Manchester United and England midfielder part-owns the club with his ‘class of 92’ team-mates Gary and Phil Neville, Nicky Butt and Ryan Giggs and will step into the dugout as an interim measure.
Alexander leaves the club fifth in League Two following a 2-2 draw with Tranmere on Saturday.
Club Statement regarding Graham Alexander.
— Salford City FC (@SalfordCityFC) October 12, 2020
First-team coach Chris Lucketti has also left the club but Scholes will be assisted by development manager Warren Joyce once the latter emerges from a period of isolation.
A statement from the club read: “Salford City Football Club announces that manager Graham Alexander has left the club with immediate effect. The club met with Graham this morning and after discussion have agreed to part company.
“The club would like to wish him all the best and success in the future. Paul Scholes will act as the interim head coach while the club looks to secure a new manager.”
Scholes, 45, has taken charge of Salford once before in 2015 – joining Phil Neville to oversee a 2-1 win over Kendal Town in the Evo-Stik Division One North.
He later entered management in earnest when he was appointed to take charge of hometown club Oldham in 2019.
The engagement lasted just 31 days, with one win in seven matches and Scholes exiting claiming he had not been given the level of control he had expected.