Roberto Mancini has been sacked as Manchester City manager after three-and-a-half years at the helm.
A club statement said he "had failed to achieve any of the club's stated targets this year, with the exception of qualification for next season's Champions League".
Chairman Khaldoon Al Mubarak said: "Roberto's record speaks for itself, he secured the love and respect of fans.
"He has done as he promised and delivered silverware and success."
Assistant manager Brian Kidd will take interim responsibility for the remaining two games of the season and the summer tour to the United States.
Manchester City added that the decision "is the outcome of a planned end of season review process that has been brought forward in light of recent speculation".
The 48-year-old Italian replaced Mark Hughes in December 2009, winning the FA Cup in 2011 and City's first top-flight league title for 44 years in 2012.
But this term, City are a distant second to champions Manchester United, went out in the Champions League group stages and lost the FA Cup final to Wigan.
Manuel Pellegrini, Malaga's Chilean coach, is favourite to succeed Mancini.
However, on Sunday night the 59-year-old, who spent one season in charge at Real Madrid in 2009-10, insisted he was not about to become the new City boss.
"I deny here and now being the new coach of Manchester City, I haven't signed any agreement with anybody," he said after Malaga's goalless Primera Division draw with Sevilla.
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