Wolfsburg have won just one of their last 11 games in the Bundesliga and are currently sitting 12th in the 18-team Bundesliga, just one point above the relegation zone.
Two years ago Wolfsburg won the league but McClaren has not been able to recreate the winning spirit he had in Holland last season where he led FC Twente to their first ever Dutch title.
Pierre Littbarski, McClaren’s former assistant, has been named as his replacement.
Wolfsburg chief executive Dieter Hoeness said:
“We were not convinced that we could have a stable collaboration with Steve McClaren until the end of the season. We tried it, but unfortunately we have now lost the belief. Following the recent negative results we cannot underestimate our situation in the table. Being only one point clear of the relegation places, we are alarmed. Now it’s just a question of increasing the gap to the relegation places as soon as possible.”