Gustavo Poyet has stepped down as Shanghai Shenhua head coach following Sunday's defeat to Henan Jianye.
Shenhua have only taken 24 points from 23 matches in the Chinese Super League and sit 12th in the table, eight points clear of the relegation zone.
They also failed to reach the group stage of the AFC Champions League after losing to Brisbane Roar in the play-off round.
"Shanghai Shenhua have agreed to accept Mr Poyet's resignation," a club statement confirmed on Monday. "Following discussions, both parties have agreed that it is in the best interests of the club to make this change.
"Technical director of the club Wu Jingui is appointed as the new coach.
"The club would like to thank Mr Poyet and his backroom staff for all his hard work over the past years and for the difficulties we've had to overcome during that time.
"We wish him and his staff all the best for the future."
Shenhua's latest defeat means they have won just one of their last seven matches in all competitions.
Fans have been growing increasingly frustrated and vented their anger towards striker Carlos Tevez, who made his return from injury as a substitute on Sunday.
Tevez, who signed from Boca Juniors last December for a reported fee of £71.6 million and is said to earn in the region of £615,000 per week, was booed during his latest disappointing display.