The 52-year-old, who guided Chelsea to the Premier League title last season, ends his second stint at
Stamford Bridge with the team languishing in 16th place, having registered just 15 points from 16 games.
Mourinho had been rewarded for last season's success with a new four-year contract worth £30 million, which was signed in August.
A statement from Chelsea read: "All at Chelsea thank Jose for his immense contribution since he returned as manager in the summer of 2013.
"His three league titles, FA Cup, Community Shield and three League Cup wins over two spells make him the most successful manager in our 110-year history. But both Jose and the board agreed results have not been good enough this season and believe it is in the best interests of both parties to go our separate ways.
"The club wishes to make clear Jose leaves us on good terms and will always remain a much-loved, respected and significant figure at Chelsea. His legacy at Stamford Bridge and in England has long been guaranteed and he will always be warmly welcomed back to Stamford Bridge.
"The club’s focus is now on ensuring our talented squad reaches its potential.
"There will be no further comment until a new appointment is made."
Mourinho was also criticised for his handling of Eva Carneiro's role at Chelsea. The 42-year-old physio, who left Stamford Bridge in September and is still involved in a legal case with the club, was branded "naive" by Mourinho for running onto the pitch to treat Eden Hazard in the final stages of the 2-2 draw with Swansea City on the opening day of the season, and subsequently saw her role downgraded.
Despite the club's problems on and off the field this term, Mourinho had remained adamant that he would not quit the club.
"I want to make it clear. One, I don't run away," he said after Chelsea's 3-1 defeat at home to Southampton on October 3.
"Two, if the club want to sack me they have to sack me because I am not running away from my responsibilities or my team."
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