The news comes following a meeting held at Crystal Park tonight between Lamont and the club's management committee to discuss the future of the club.
In a text to the players sent tonight he thanked them for their efforts for this season and those who had been with him throughout his five year tenure at the club, telling them that he had been sacked and wishing them all the best for the future.
Lamont's departure comes on the back of a dismal run of form which saw them finish in a lowly seventh place this season, failing to improve on last year's third place.
The Town's trophy cabinet also remains bare, missing out on silverware in the final of the Mid Ulster Cup.
And the season decended into a farce in the last three fixtures as they struggled to field a team against Ards, Dundela and Portstewart.
Indeed in the Ards game they finished the match with only 10 men as they had no available substitutes after Ryan Evans got injured.
Lamont was also hit with an eight game ban from the IFA 's Disciplinary Committee following his comments to match officials in the cup final defeat by Loughgall.
He has still one game from a four game ban from the touchline to serve following a similar incident at Dundela.
The Town boss has also fallen out with long serving players Mark Quinn and Timmy Grant in a club versus country row.
There will be more on this story throughout the week on www.banbridgeleader.co.uk and www.dromoreleader.co.uk.