Sagnol had been under growing pressure after his side managed just two wins in 11 matches in all competitions, while he was given a three-match touchline ban last week after confronting officials during their Coupe de France loss to Nantes in February.
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"Girondins de Bordeaux and Willy Sagnol have come to an agreement to end their collaboration," a club statement released on Monday read.
"This mutual decision, taken with immediate effect, is justified by the worrying sporting situation. The club wishes to thank Willy for his commitment and loyalty."
Rame, who won two Ligue 1 titles as a player with Bordeaux, will take charge of first-team duties despite a lack of senior coaching experience.
Bordeaux, who are 14th after 30 games and just five points outside of the relegation zone, will be Rame's maiden managerial post.