The 50-year-old, who created a host of unwanted records during his brief stint at Old Trafford, becomes the first United manager to be dismissed since Ron Atkinson in 1986.
Announcing Moyes' departure on their official Twitter account, United added: "The club would like to place on record its thanks for the hard work, honesty and integrity he brought to the role."
Moyes had endured a torrid campaign in charge of the reigning Premier League champions, with Sunday's abject 2-0 loss to former club Everton guaranteeing that the Red Devils will miss out on a place in the Champions League next season.
Man U player-coach Ryan Giggs is expected to take charge of the club's next game at home against Norwich this coming Saturday.
There is even speculation that Sir Alex Ferguson could return to the dugout he vacated just a year ago.
Netherlands coach Louis Van Gaal, Borussia Dortmund boss Jurgen Klopp, Atletico Madrid's manager Diego Simeone and Paris St-Germain's Laurent Blanc have already been tipped as possible successors to Moyes.
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