diff --git a/apps/settings/src/components/Users/UserRow.vue b/apps/settings/src/components/Users/UserRow.vue
index d5ecff42384..b6af13c7300 100644
--- a/apps/settings/src/components/Users/UserRow.vue
+++ b/apps/settings/src/components/Users/UserRow.vue
@@ -262,6 +262,7 @@
 					label="displayname"
 					:options="possibleManagers"
 					:placeholder="managerLabel"
+					clearable
 					@open="searchInitialUserManager"
 					@search="searchUserManager"
 					@option:selected="updateUserManager" />
@@ -636,20 +637,25 @@ export default {
 		},
 
 		async updateUserManager(manager) {
-			if (manager === null) {
-				this.currentManager = ''
-			}
+			// Update the local state immediately for better UX
+			const previousManager = this.currentManager
+			this.currentManager = manager || ''
 			this.loading.manager = true
+
 			try {
 				await this.$store.dispatch('setUserData', {
 					userid: this.user.id,
 					key: 'manager',
-					value: this.currentManager ? this.currentManager.id : '',
+					value: manager ? manager.id : '',
 				})
+
 			} catch (error) {
 				// TRANSLATORS This string describes a line manager in the context of an organization
 				showError(t('settings', 'Failed to update line manager'))
-				console.error(error)
+				console.error('Failed to update manager:', error)
+
+				// Revert to the previous manager in the UI on error
+				this.currentManager = previousManager
 			} finally {
 				this.loading.manager = false
 			}
diff --git a/apps/settings/src/store/users.js b/apps/settings/src/store/users.js
index 3734b7008df..39ff43346d8 100644
--- a/apps/settings/src/store/users.js
+++ b/apps/settings/src/store/users.js
@@ -767,23 +767,27 @@ const actions = {
 	 */
 	async setUserData(context, { userid, key, value }) {
 		const allowedEmpty = ['email', 'displayname', 'manager']
-		if (['email', 'language', 'quota', 'displayname', 'password', 'manager'].indexOf(key) !== -1) {
-			// We allow empty email or displayname
-			if (typeof value === 'string'
-				&& (
-					(allowedEmpty.indexOf(key) === -1 && value.length > 0)
-					|| allowedEmpty.indexOf(key) !== -1
-				)
-			) {
-				try {
-					await api.requireAdmin()
-					await api.put(generateOcsUrl('cloud/users/{userid}', { userid }), { key, value })
-					return context.commit('setUserData', { userid, key, value })
-				} catch (error) {
-					context.commit('API_FAILURE', { userid, error })
-				}
-			}
+		const validKeys = ['email', 'language', 'quota', 'displayname', 'password', 'manager']
+		if (!validKeys.includes(key)) {
+			return Promise.reject(new Error('Invalid request data'))
 		}
+
+		try {
+			await api.requireAdmin()
+			if (typeof value === 'string' && value.length === 0 && allowedEmpty.includes(key)) {
+				// If value is empty and allowed to be empty, send DELETE request
+				await api.delete(generateOcsUrl('cloud/users/{userid}', { userid }), { key })
+				return context.commit('setUserData', { userid, key, value: '' })
+			}
+
+			if (typeof value === 'string' && (value.length > 0 || allowedEmpty.includes(key))) {
+				await api.put(generateOcsUrl('cloud/users/{userid}', { userid }), { key, value })
+				return context.commit('setUserData', { userid, key, value })
+			}
+		} catch (error) {
+			context.commit('API_FAILURE', { userid, error })
+		}
+
 		return Promise.reject(new Error('Invalid request data'))
 	},