Irish FA Chief Executive Patrick Nelson says Ian Baraclough's "overall record of results on the pitch" led to his sacking.
The IFA's Board reached its decision on Thursday night before confirming on Friday that it had parted company with the 51-year-old.
Pressure had been mounting on Baraclough - who was named as Michael O'Neill's successor in June 2020 - following another miserable Nations League campaign.
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Baraclough narrowly avoided relegation from League C after his side picked up just five points from a possible 18.
Many fans have also been demanding change before the start of the Euro 2024 qualifying campaign after Northern Ireland were handed a favourable draw.
IFA Chief Executive Nelson said: "Under Ian’s stewardship we have seen the introduction of new players who will wear the green jersey with pride for years to come and for this we place on record our gratitude.
"However, in light of the overall record of results on the pitch, the Irish FA Board has subsequently taken this decision.
"We wish Ian the very best for the future and thank him for his contribution to football in Northern Ireland."
Irish FA President Conrad Kirkwood added: "I would like to place on record my sincere thanks to Ian for his commitment to the role of senior men’s manager.
"I, on behalf of the Irish Football Association and the wider football family here in Northern Ireland, wish him every success in the future."
Baraclough was promoted from Northern Ireland’s under-21s to replace O’Neill in June 2020 but won only six of his 28 games in charge inside 90 minutes.
He also beat Bosnia & Herzegovina on penalties but missed out on both the Covid-delayed Euro 2020 and this year’s World Cup.
In the last Nations League Northern Ireland won just one of their six games, with fans chanting "Bara out' midway through the campaign.
Baraclough - who can be credited for bringing through a number of young players during his time at the helm - did attend this month's Euro 2024 qualifying draw in Frankfurt and urged fans to judge him on the upcoming campaign.
But despite being contracted for that run of games the IFA have taken action.
Amalgamation of Official Northern Ireland Supporters Clubs Chairman Gary McAllister believes Baraclough's exit is the "correct decision".
He said: "This is the correct decision and one that I feel the vast majority of fans will agree with.
"It has been clear that, very regrettably, a growing number of fans had lost faith in Ian.
"It must be acknowledged that the manager has worked hard and had given an opportunity to many young players, but unfortunately results and performances have been disappointing.
"Ian was always a gentleman in any interaction we had with him and we wish him every future success."
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