The 59-year-old has been relieved of his duties, with the Albiceleste precariously sitting fifth in CONMEBOL World Cup qualifying.
Argentina have sacked manager Edgardo Bauza after a string of poor results.
Bauza oversaw eight World Cup qualifiers for the Albiceleste, but after winning just three of those the national side are facing the possibility of failing to reach the 2018 tournament in Russia.
"We've reached an agreement. We've told Bauza he's ceased to be the national team coach," Argentine Football Association president Claudio Tapia told reporters.
Argentina sit fifth in CONMEBOL World Cup qualifying, which would see them drawn into a play-off against an Oceania side. The Albiceleste are one point adrift of the automatic qualifying slots but just two points clear of sixth-place Ecuador.
Star Lionel Messi is poised to miss Argentina's next three qualifiers after earning a four-game suspension for verbally insulting an assistant referee in a 1-0 win over Chile last month. He served the first game of the ban in a 2-0 loss to Bolivia.
Bauza took over in August following the exit of Gerardo "Tata" Martino, who resigned after Argentina fell to Chile in the Copa America Centenario final.
Sevilla manager Jorge Sampaoli, an Argentina native, has been heavily linked to the Albiceleste job in recent weeks.