diff --git a/admin/settings/grades.php b/admin/settings/grades.php
index 8598f549000..a832c9db217 100644
--- a/admin/settings/grades.php
+++ b/admin/settings/grades.php
@@ -56,11 +56,6 @@ if (has_capability('moodle/grade:manage', $systemcontext)
                                                          '3' => '3',
                                                          '4' => '4',
                                                          '5' => '5')));
-        $temp->add(new admin_setting_configselect('grade_navmethod', new lang_string('navmethod', 'grades'), null,
-                                                  GRADE_NAVMETHOD_TABS,
-                                                  array(GRADE_NAVMETHOD_DROPDOWN => new lang_string('dropdown', 'grades'),
-                                                        GRADE_NAVMETHOD_TABS => new lang_string('tabs', 'grades'),
-                                                        GRADE_NAVMETHOD_COMBO => new lang_string('combo', 'grades'))));
 
         $setting = new admin_setting_configtext('grade_export_userprofilefields',
             new lang_string('gradeexportuserprofilefields', 'grades'),
diff --git a/grade/upgrade.txt b/grade/upgrade.txt
index 2197ef113e6..be9df572f69 100644
--- a/grade/upgrade.txt
+++ b/grade/upgrade.txt
@@ -3,6 +3,9 @@ Information provided here is intended especially for developers.
 
 === 4.0 ===
 
+* The setting $CFG->grade_navmethod setting has been completely removed because it's not required anymore. This setting
+  was used to set the type of navigation (tabs or dropdown box) used in gradebook which is now replaced with tertiary
+  navigation.
 * The print_grade_plugin_selector() function has been deprecated. This function was used to generate and output the
   dropdown box navigation in gradebook which is now replaced with tertiary navigation.
 * The grade_print_tabs() function has been deprecated. This function was used to generate and output the tabs navigation
diff --git a/lib/db/upgrade.php b/lib/db/upgrade.php
index ca4f9c7998c..3e4b2f43ed9 100644
--- a/lib/db/upgrade.php
+++ b/lib/db/upgrade.php
@@ -3189,5 +3189,15 @@ function xmldb_main_upgrade($oldversion) {
         upgrade_main_savepoint(true, 2021120100.01);
     }
 
+    if ($oldversion < 2021121400.01) {
+        // The $CFG->grade_navmethod setting has been removed because it's not required anymore. This setting was used
+        // to set the type of navigation (tabs or dropdown box) which will be displayed in gradebook. However, these
+        // navigation methods are no longer used and replaced with tertiary navigation.
+        unset_config('grade_navmethod');
+
+        // Main savepoint reached.
+        upgrade_main_savepoint(true, 2021121400.01);
+    }
+
     return true;
 }
diff --git a/lib/grade/constants.php b/lib/grade/constants.php
index 039ed3b8cca..03187ea7d8a 100644
--- a/lib/grade/constants.php
+++ b/lib/grade/constants.php
@@ -239,21 +239,6 @@ define('GRADE_REPORT_MEAN_ALL', 0);
  */
 define('GRADE_REPORT_MEAN_GRADED', 1);
 
-/**
- * GRADE_NAVMETHOD_DROPDOWN - Display a drop down box to allow navigation within the gradebook
- */
-define('GRADE_NAVMETHOD_DROPDOWN', 0);
-
-/**
- * GRADE_NAVMETHOD_TABS - Display tabs to allow navigation within the gradebook
- */
-define('GRADE_NAVMETHOD_TABS', 1);
-
-/**
- * GRADE_NAVMETHOD_TABS - Display both a drop down and tabs to allow navigation within the gradebook
- */
-define('GRADE_NAVMETHOD_COMBO', 2);
-
 /**
  * GRADE_MIN_MAX_FROM_GRADE_ITEM - Get the grade min/max from the grade item.
  */
diff --git a/version.php b/version.php
index 34ddb9376ac..c089c3f45ab 100644
--- a/version.php
+++ b/version.php
@@ -29,7 +29,7 @@
 
 defined('MOODLE_INTERNAL') || die();
 
-$version  = 2021121400.00;              // YYYYMMDD      = weekly release date of this DEV branch.
+$version  = 2021121400.01;              // YYYYMMDD      = weekly release date of this DEV branch.
                                         //         RR    = release increments - 00 in DEV branches.
                                         //           .XX = incremental changes.
 $release  = '4.0dev+ (Build: 20211214)'; // Human-friendly version name