"Gary Megson has been relieved of his duties with immediate effect," the club said in a statement on their website.
"The decision has been taken in the light of the position the club finds itself in the Premier League at the halfway point of the season.
"Assistant Manager Chris Evans and first-team coach Steve Wigley will take charge of first team matters for the interim period."
Megson was an unpopular choice with Bolton fans when he took over from Sammy Lee in October 2007. A local opinion poll at the time found less than two percent who were happy with the appointment.
BOOED OFF
The team were booed off after Tuesday's game when they lost a 2-0 lead against fellow strugglers Hull even though the draw extended their unbeaten run to four games which included a win over West Ham United and a 3-3 draw with Manchester City.
After the match Megson, 50, said: "Do I think I'll ever be given a fair crack of the whip here? No.
"When I came here it was a club at the bottom and as soon as I arrived Nicolas Anelka left. Yet the wages bill is down, running costs are down and it's a bit galling if people can't see what's happening and what we are trying to do."
Bolton finished two places above the relegation zone in Megson's first campaign in charge and they were 13th last season.
Bolton were the eighth club Megson has managed. He spent four years with West Bromwich Albion from 2000 but most of his other appointments have lasted less than two years.
The former Sheffield Wednesday and Manchester City midfielder was the third Premier League manager to lose his job this season following the departure of Mark Hughes from Manchester City and Paul Hart at Portsmouth.
