Former coach Joaquin Caparros, 62, and without a club since leaving Qatar’s Al Ahli in December, was named as Montella’s successor.
“The club took this decision due to the poor results of the team who haven’t won since March 13,” said Sevilla in a statement.
Friday’s 2-1 defeat at lowly Levante proved the final straw for a club who are seventh in the table and hanging on grimly for a place in next season’s Europa League.
The loss to Levante followed last weekend’s 5-0 rout at the hands of Barcelona in the Copa del Rey final.
Montella, 43, replaced Argentine coach Eduardo Berizzo at the end of December, who was sacked just a month after being diagnosed with prostate cancer.
Montella led Sevilla to a memorable Champions League last-16 win over Manchester United before their run ended in the quarter-finals at the hands of Bayern Munich.
In 28 matches, the Italian won 11 and lost 10 with seven draws.
Caparros was in charge of Sevilla from 2000-2005 and has four games in which to secure a European place.
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