"I've come to the conclusion that the circumstances dictate that in the interests of the honourable deputy president, the government and our young democratic system ...

it will be best to release honourable Jacob Zuma from his responsibilities as Deputy President of the republic and member of the cabinet," Mbeki told a special joint session of parliament.

Mbeki said he would name Zuma's successor in due course.

Analysts have suggested Mbeki may name an interim deputy until the ANC decides who should succeed him at a five-yearly congress slated for 2007.

Many analysts have cited Defence Minister Mosiuoa Lekota and Foreign Minister Nkosazana Dlamini-Zuma as likely replacements.

Zuma (63) was the frontrunner among candidates tipped to succeed Mbeki when he steps down after his second and final term in office in 2009.

Zuma's former financial adviser Schabir Shaik was convicted of corruption and fraud this month in a Durban High Court ruling that also implicated Zuma and said the pair's relationship was "generally corrupt", sparking calls for Zuma to resign.

Shaik was jailed for 15 years last week on charges of paying Zuma R1,3 million in return for using his political influence to further Shaik's business interests, and of seeking a bribe for Zuma from a French arms firm in return for protection from a government probe into an arms deal.

Zuma, popular with the ruling African National Congress (ANC) rank and file as well as its trade union and Communist allies, had refused to step down saying he believed he had committed no crime and had not been tried in a court of law.

Yesterday he accepted Mbeki's decision to sack him but protested his innocence of graft and insisted he had been tried unfairly by the media.

A solemn Zuma read a prepared statement to journalists barely an hour after Mbeki sacked him.

"It is the president's prerogative to take such a decision ...

I accept and respect this pronouncement," said Zuma, dressed in a business suit and tie.

"I believe he has taken this decision not because I am guilty of any crime, but because of considerations relating to the constraints within which government operates," he said.

"As stated before let me reiterate that my conscience is clear.

I have not committed any crime against the state or the people of South Africa.

I however still maintain that I have been treated extremely unfairly throughout the entire debacle for about half a decade," Zuma said.

"I have been tried by the media and in effect found guilty by a court in absentia.

I have not been given an opportunity in any appropriate forum to defend myself against the allegations made," he said.

Former South African President Nelson Mandela supported Mbeki's decision to fire Zuma, saying he stood by him during "these testing times" for the leadership of the ruling party.

Mandela (87), the most revered member of ANC, praised Zuma for his "major contribution" to the struggle against apartheid, during a news conference held at his Johannesburg home.

"While we are naturally deeply saddened that a person who played such a major contribution in our liberation and democracy had to come to this point in his life and career, we fully support the president in the difficult times in the life of our government, nation and organisation," said Mandela.

"We are confident that President Mbeki will, as always, lead with wisdom and compassion, guiding our nation through these testing times and holding our organisation together," he said.

Leader of the Zulu-dominated Inkatha Freedom Party, Mangosuthu Buthelezi, said: "President Mbeki was correct in exercising his constitutional prerogative to dismiss Mr Zuma because the situation hung like a dark cloud over South Africa and would have eventually paralysed the executive".

Former president FW de Klerk also welcomed Mbeki's "principled decision".

"I particularly welcome the fact that President Mbeki based his decision squarely on the principles contained in the constitution and that he strongly upheld the independence of the judiciary," he said.

Main opposition leader Tony Leon of the Democratic Alliance also described Mbeki's decision as a "principled one", adding: "He did right by South Africa ...

he did right for our image in the world."

In a statement, the ANC said it "accepts and supports the decision" but at the same time said it was "applauding the outstanding contribution that comrade Zuma has made" both at home and overseas.

- Nampa-Reuters-Sapa-AFP