"The Board announce with great sadness that Paul Ince will leave the club. After a Board meeting yesterday it was decided to relieve Paul of his duties," a Blackburn statement read on Tuesday.
Ince took over from Mark Hughes as Rovers boss last summer, after the latter led the team to seventh place in the league last season.
However, Ince failed to maintain the progress of his former Manchester United teammate as Rovers are currently 19th in the Premier League table.
"Three wins in 17 games has seen a squad, which finished seventh last season, fall to 19th position," Blackburn chairman John Williams said.
"We are currently in real danger of becoming detached from the pack.
"The survival of the club in the Premier League is paramount and our focus now is on finding a replacement who will be able to maintain our top division status."
The likes of Graeme Souness, Alan Curbishley and Sam Allardyce are possible candidates for the Blackburn vacant position.