
Ireland failed to qualify for the Euro finals in Austria and Switzerland, with Germany and the Czech Republic advancing.
The Irish campaign included a 5-2 defeat in Cyprus, a last-gasp 2-1 win over minnows San Marino and a last-minute 1-1 home draw with Cyprus last week, the latest setback sealing Staunton's fate.
The Football Association of Ireland board met Tuesday and said in a statement early Wednesday that Staunton's contract was terminated "by mutual consent." Staunton reportedly wanted to carry on for 2010 World Cup qualifying but that request was dismissed.
The former defender Staunton, 38, became manager when Brian Kerr failed to bring the team to the 2006 World Cup.
Ireland have not qualified for a big tournament since playing at the 2002 World Cup.