The 42-year-old guided the Canaries from League One to the Premier League but now has a new challenge at Villa Park.
Here TEAMtalk looks at some of the likely candidates to replace Lambert.
MALKY MACKAY
One of the favourites for the job is the current Cardiff manager who spent six years at Norwich as a player. Mackay led the Bluebirds to the Carling Cup final last season, where they lost on penalties to Liverpool after putting in a gritty performance at Wembley. A move to Norwich would give the Scot his first shot at Premier League management.
STEVE BRUCE
Bruce is another former Canary and he has a wealth of managerial experience. Since his dismissal from Sunderland in November, Bruce has been without a club and his resume could draw the attention of the Norwich board. He has had nearly a decade in the Premier League managing Birmingham, Wigan and the Black Cats and will be looking to get back into management.
MARK BOWEN
Bowen was one of the candidates for the job after Bryan Gunn's departure in 2009 and could be looking for a return to Carrow Road. Bowen made 321 appearances for Norwich but is yet to take up his first managerial role. After working as number two for both Mark Hughes and Bruce, Bowen is currently working as QPR's assistant boss but a lack of managerial experience could count against him.
CHRIS HUGHTON
Linked with a move to West Brom and also to Swansea, the current Birmingham manager is a possibility for the Norwich vacancy. With Premier League experience from his time at Newcastle, the 53-year-old has guided Birmingham to the play-offs and is well respected within the game. A move to the Canaries could prove attractive if Hughton wants to be back in the Premier League.
ALAN CURBISHLEY
Without a club since 2008 but the former Charlton and West Ham boss has a reputation for getting his teams playing good football. After being linked with several other clubs in recent seasons Curbishley may fancy the hot-seat at Norwich but his time out of the game could count against him.
Is there anyone you think we've missed out? Let us know
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