Rogerio Ceni established himself as a Sao Paulo icon as a player but has been let go within just seven months of taking over as head coach.
Over 25 years at Sao Paulo the legendary former goalkeeper made 1,237 appearances, scored 131 goals and won 18 titles before retiring in December 2015.
One year later Ceni returned to Morumbi as head coach, but his tenure proved a disappointing one and has been brought to an end after Sunday's 2-0 loss at Flamengo made it six Campeonato Brasileiro games without a win.
"The respect and recognition for the greatness of Rogerio Ceni as a historical figure of this club will be celebrated forever," said Sao Paulo president Carlos Augusto de Barros e Silva in a statement confirming Ceni's exit by mutual consent.
The Tricolor were beaten by Corinthians in the semi-finals of the Campeonato Paulista and sit in the relegation zone of the Brazilian top flight after 11 matches.
Sao Paulo were eliminated from the Copa do Brasil in the fourth round by Cruzeiro and exited the Copa Sudamericana at the first stage at the hands of Argentine side Defensa y Justicia.