Parma's board made the decision after Sunday's defeat to AS Roma. The result saw Parma drop into the bottom three of the Serie A table.
Parma have lost five of their past six games under Pecchia.
“Parma Calcio and Fabio Pecchia have parted ways,” Parma announced on Monday night.
“After 110 matches in charge of the Gialloblu, the Club would like to highlight the milestones that were achieved together, culminating in the historic 2023/24 Serie B triumph.
“During a spell that lasted over two years, Fabio Pecchia and his staff left an indelible mark on the Gialloblu’s history, achieving sporting objectives while displaying admirable human qualities and great professionalism.
“Parma Calcio wishes the best of luck to Fabio and his staff in their future endeavours.”