Kovac was appointed Monaco manager in the summer of 2020 and he led the Principality club to third place on the Ligue 1 standings in his first season.
Monaco currently occupy sixth position in the current campaign, 17 points behind league leaders Paris Saint Germain.
“AS Monaco announce that the club has taken the decision to part ways with Niko Kovac," they wrote in a statement.
“The Croatian coach was informed on Thursday during a preliminary meeting.
“Niko Kovac arrived in the Principality in July 2020 and led the team 74 times. AS Monaco will announce the name of its new head coach very soon.
“Until then, Stéphane Nado, coach of the reserves, will train the first team.”
Kovac was previously in charge of Bayern Munich, whom he led to the Bundesliga, DFB-Pokal and German Super Cup in his only full season but was dismissed midway through the 2019/2020 season.
The 50-year-old has also taken charge of Eintracht Frankfurt in the past, leading them to a DFB-Pokal trophy.
