The 48-year-old replaced Arsene Wenger on a two-year deal in May 2018 with the option for a further year, after lack of success in the latter part of the Frenchman’s tenure.
Emery guided the North Londoners to Europa League final in Baku last season, where they lost to fellow London rivals Chelsea.
The Gunners are without a win in their last seven games in all competitions, a run which begun with the home draw against Crystal Palace on 27th October.
The 2-2 draw against Southampton in the Premier League on Saturday and last night’s defeat against Eintracht Frankfurt in the Europa League proved to be the final nail in Emery’s coffin.
Arsenal’s statement in full is as follows: “We announce today that the decision has been taken to part company with our head coach Unai Emery and his coaching team,”
“Speaking on behalf of the Arsenal board and our owners Kroenke Sports Entertainment, Josh Kroenke said: “Our most sincere thanks go to Unai and his colleagues who were unrelenting in their efforts to get the club back to competing at the level we all expect and demand. We wish Unai and his team nothing but future success.”
“The decision has been taken due to results and performances not being at the level required.
“We have asked Freddie Ljungberg to take responsibility for the first team as interim head coach. We have full confidence in Freddie to take us forward.”
“The search for a new head coach is underway and we will make a further announcement when that process is complete.”
The former Paris Saint-Germain head coach managed 78 games at Arsenal, winning 43, losing 19 and 16 draws.