A 2-0 home defeat to Middlesbrough on Wednesday left Forest bottom of the Championship table, with just one point from their opening seven games. The Reds have lost six times in the second tier this season and are yet to win a game.
Hughton was appointed Nottingham Forest manager in October 2020 with the club bottom of the Championship and the former Newcastle United, Norwich City and Brighton and Hove Albion boss led them to a 17th place finish at the end of the season.
Steven Reid has been placed in temporary charge until a new manager is found.
A statement from the club said: "Nottingham Forest can confirm that Chris Hughton has been relieved of his duties as first team manager.
"The club would like to place on record its appreciation for Chris's efforts. Chris joined the club in a difficult period for everyone in football and around the world and we thank him for the way he has conducted himself during his tenure.
“Steven Reid will take temporary charge of the first team as interim head coach.
"The search for the permanent successor has begun and the club will update supporters in due course.
"The club would like to wish Chris all the best in his future career."
