
The national football association's coaching committee took the decision Tuesday, the Beijinng Wanbao newspaper reported.
China failed to get past the group stage of the Asian Cup for the first time since 1980, and the coach came in for criticism for his team selections, tactics and training methods.
The committee has also criticised national team players for "a lack of competitive spirit and sense of responsibility."
According to the newspaper Xiamen Wanbao, China's successful under-23 coach, the Serbian-born Ratomir Dujkovic, is to take over the national team in a caretaker capacity.
In 2002, China qualified for their first-ever World Cup finals under Serbian Bora Milutinovic but were eliminated in the group stage after three defeats and without scoring a goal.