The club have managed to win only two games since the Italian boss took over in October.
Watford appointed Claudio Ranieri on a two-year contract after they parted ways with Xisco Munoz on October 3. The club was 14th in the Premier League at the time, hoping to avoid going further down the table.
However, the appointment of Ranieri did not improve things at Vicarage Road. The Hornets won only two of their 14 games under the former Leicester City boss while slipping to 15th place on the table. A 3-0 defeat against relegation rivals Norwich City proved to be the final straw for Ranieri.
“Watford Football Club confirms the departure of Head Coach Claudio Ranieri,” a statement on the club’s website read.
“The Hornets’ Board recognises Claudio as a man of great integrity and honour, who will always be respected here at Vicarage Road for his efforts in leading the team with dignity.
“However the Board feels that, with nearly half of the Premier League campaign remaining, a change in the Head Coach position now will give a new appointment sufficient time to work with a talented squad to achieve the immediate goal of retaining Premier League status.”
Watford are on a run of nine winless games since their win over Manchester United in November. They will now look to find their third coach of the season during the international break.
The Hornets will face another one of their bottom-of-the-table rivals, Burnley, on February 5.