Brugge have yet to taste defeat so far in their Belgian Pro League campaign and head into Sunday's meeting with champions Anderlecht four points behind leaders Standard Liege.
However, Garrido saw his side's European campaign cut short, as Brugge slipped to a surprising defeat to Slask Wroclaw in the third qualifying round of the UEFA Europa League last month, the Polish side progressing 4-3 on aggregate.
Brugge are well placed to mount a challenge to return to European competition, though, and their early domestic form suggests they will be in contention to fight for their first league title since 2005.
The club's hierarchy, however, have decided that Garrido, who took over from Georges Leekens in November 2012, is not the man to lead them forward.
"This morning (Thursday) the co-operation with head coach Juan Carlos Garrido and physical coach Jorge Simo was brought to an end," read a statement on the club's official website.
"Pending the appointment of a successor, assistant coaches Philippe Clement and Stephan Van der Heyden are to take charge of sporting matters."
Michel Preud'homme, the former Standard Liege, Gent and Twente boss, is being tipped to replace Garrido.
Preud'homme is the current manager of Saudi Arabian side Al Shabab, who were recently eliminated from the AFC Champions League at the quarter-final stage.
