Ex-Italy World Cup winner Cannavaro sacked as Dinamo Zagreb coach
Cannavaro, who led Italy to the 2006 World Cup and won that year's Ballon d'Or as well, was appointed by Dinamo in late December.
"Cannavaro is no longer the coach of Dinamo's first team," the club said in a statement.
As the Blue Ones' third coach this season Cannavaro oversaw 14 matches including 10 in the Croatian league.
He led Dinamo to five victories, two draws and three defeats in the top-flight as they sit in third place in the table.
Dinamo trail league leaders Hajduk Split by eight points with eight matches remaining.
According to media reports, the latest 3-0 defeat by Istra 1961 at the weekend was the final straw for the club, who were already unhappy with Cannavaro's results.
On Wednesday, however, Dinamo praised Cannavaro's 2-1 win against AC Milan in the league phase of the Champions League earlier in the season but it was not enough for the Croatian club to reach the competition's knockout phase.
Dinamo will be taken over by current assistant coach Sandro Perkovic.
Before joining the Croatian club, the 51-year-old Cannavaro was in charge of Udinese in Serie A.
He has previously coached clubs in the Middle East and China, and briefly China's national team in 2019.