Forest are 14th in the Championship -- the second tier of English football -- and have won just one of their past seven league matches.
"Nottingham Forest can confirm that the contracts of Mark Warburton and (assistant) David Weir have been terminated with immediate effect," the club said in a brief statement on their website.
Academy boss Gary Brazil has been appointed caretaker manager.
The former European champions (1979, 1980) have lost 14 times this season -- the joint second-highest number of losses in the division.
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