The Italian leaves the Stadium of Light after less than six months in the post following a poor start to the season with the club yet to win in the Premier LeagueSunderland have confirmed they have parted company with manager Paolo Di Canio following the Black Cats' 3-0 defeat to West Brom on Saturday.
The defeat leaves Sunderland bottom of the Premier League table with just one point from five games and with Liverpool and Manchester United the next visitors to the Stadium of Light in the league.
Before then the club face Peterborough in the Capital One Cup with Sunderland confirming that Kevin Ball will take charge of the team for Tuesday's clash.
Di Canio replaced Martin O'Neill at the Stadium of Light in March and helped the club avoid relegation as Sunderland finished the season in 17th position, three points clear of the drop zone.
The Italian then oversaw a busy summer in the transfer window bringing in 14 new players including the likes of Jozy Altidore, Vito Mannone, Ki Sung-Yueng, Fabio Borini and Andrea Dossena.
However, despite the new arrivals Sunderland have endured a poor start to the season picking up just one point, away at Southampton, and suffering defeats at the hands of Fulham, Crystal Palace, Arsenal and West Brom.
Following the defeat to the Baggies, Di Canio had walked across the pitch to stand in front of the club's away supporters as they vented their frustrations at full-time.
Speaking after the match, the Italian had said: "I absorb the insults as it's part of the game - if I was in their position I'd be furious.
"But I'm professional: 24 hours a day I work for this cause. One day their reaction will be a different reaction."
Former Chelsea manager Roberto Di Matteo has been installed as the early bookmakers' favourite to replace Di Canio at the Stadium of Light, with Gustavo Poyet also in the running.