Carlo Ancelotti has been sacked as manager of Bayern Munich following their Champions League 3-0 defeat at the hands of Paris Saint-Germain, the club announced on Thursday.
Ancelotti, 58, who replaced Pep Guardiola at the start of last season, helped Bayern win the Bundesliga last term, but they only reached the last eight of the Champions League and the German Cup semi-finals.
Former player Willy Sagnol, the ex-France international who had been serving as an assistant to Ancelotti, has been named interim coach.
"The performance of our team since the start of the season did not meet the expectations we put to them," said Bayern's chief executive Karl-Heinz Rummenigge.
"I would like to thank Carlo for his cooperation. Carlo is my friend and will remain my friend, but we had to make a professional decision. The game in Paris clearly showed that we had to draw consequences."
Former Chelsea, PSG, Real Madrid and AC Milan boss Ancelotti has won the Champions League three times - with Milan in 2003 and 2007, and with Madrid in 2014.
The defeat in Paris was Bayern's heaviest since losing 3-0 away to Barcelona in the Champions League semifinal first leg in May 2015.
It was also their heaviest loss in a group game in the competition since a 3-0 reverse in Lyon in March 2001.
Bayern are currently third in the Bundesliga table after six games, three points behind leaders Borussia Dortmund, before visiting Hertha Berlin on Sunday.