Moyes, 50, was dismissed at a meeting with executive vice-chairman Ed Woodward at the club's Carrington training ground this morning, BBC reports.
Moyes left Everton to sign a six-year deal with Manchester United in 2013 but the premiere league champions have been playing poorly since he took over as manager.
Man U player-coach Ryan Giggs is expected to take charge of the club's next game at home against Norwich this coming Saturday.
Netherlands coach Louis Van Gaal, Borussia Dortmund boss Jurgen Klopp, Atletico Madrid's manager Diego Simeone and Paris St-Germain's Laurent Blanc have already been tipped as possible successors to Moyes, BBC reports.
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