Vanarama side Telford sack former Southport boss Liam Watson
The 44-year-old Liverpudlian was dismissed following a 1-1 draw with Chester in the FA Trophy on Saturday.
Telford are nine points adrift at the bottom of the Conference table.
Watson left Southport to join Telford in May 2013 after the Bucks' relegation to the Conference North and he led them straight back up as champions.
But the team have struggled at a higher level, losing 16 and winning just four of their 24 Conference matches this season.
A club statement said: "We would like to thank them both for their effort and commitment since joining the club, and more importantly their unique achievements of winning the club's first-ever championship in 62 years and for taking the club to the second round of the FA Cup for the first time ever.
"The club and trust board will now work quickly to appoint a permanent successor."
Telford lost to 2-1 to fellow strugglers Welling United in the Conference on Tuesday, two days after a stoppage-time defeat at League One leaders Bristol City in the FA Cup second round.
Nick Southall who reports on the club for BBC radio Shropshire said:
"Telford may feel they had no choice but to make a change with the club bottom of the Conference and a crucial run of games to come over Christmas.
"I still believe Liam Watson could have turned the situation around, with money to spend in January from the Bucks' FA Cup run.
"We mustn't forget what he has achieved with Telford. He inherited a squad that had broken the Conference record for the longest winless streak in the league's history. He won the Conference North at the first time of asking and restored some much-needed pride in the club.
"He's not someone I'd expect to be out of a job for too long as I still regard him as one of the best managers around."