The English manager leaves Stamford Bridge after only seven months.
Chelsea have parted ways with Graham Potter as their head coach.
Potter joined the Blues after their unexpected decision to sack Thomas Tuchel in September. The English manager hoped to emulate his successful spell at Brighton but failed to impress at Stamford Bridge.
A disappointing run of results saw the Blues slip to the 11th spot on the Premier League table. The London giants hoped to bounce back after the international break. But a 2-0 defeat against Aston Villa on Saturday convinced the club to sack Potter.
“On behalf of everyone at the club, we want to thank Graham. We have the highest degree of respect for Graham as a coach and as a person,” Chelsea owner Todd Boehly said.
“He has always conducted himself with professionalism and integrity.”
Assistant manager Bruno Saltor will take charge at Stamford Bridge until the next manager arrives.
Boehly and Behdad Eghbali added: “We all will be getting behind Bruno and the team as we focus on the rest of the season. We have 10 Premier League games remaining and a Champions League quarter final ahead.”
Reports from English media claim Julian Nagelsmann is the main candidate to replace Potter. However, the Blues might face competition from city-rivals Tottenham, who sacked Antonio Conte last week.