The Spaniard, who previously led Paris St-Germain to the French league title and won three Europa Leagues with Sevilla, was appointed Gunners boss in May 2018, succeeding Arsene Wenger.
He has been replaced on a temporary basis by assistant and former Arsenal midfielder Freddie Ljungberg. Arsenal said the decision was "taken due to results and performances not being at the level required".
See how Arsenal fans are jubilating worldwide....
Arsenal fans waking up and seeing Unai Emery is still their managerpic.twitter.com/cJE5qCuvTp
The decision to sack the Spaniard who was hired as the replacement for long-term manager Arsene Wenger in the summer of 2018, came after Arsenal went without a win in their last seven matches following their Thursday's 2-1 defeat to Eintracht Frankfurt in the Europa League.
On Friday morning, Arsenal chiefs held a meeting to discuss his future following the loss and decided to sack him after his 18 months at the club.
A statement from Josh Kroenke, son of majority owner Stan, said: 'Our most sincere thanks go to Unai and his colleagues who were unrelenting in their efforts to get the club back to competing at the level we all expect and demand.
'We wish Unai and his team nothing but future success.'
A further statement from an Arsenal spokesperson added: 'The decision has been taken due to results and performances not being at the level required.'
Former Arsenal player, Freddie Ljungberg has been put in interim charge of the team. But it's understood the club is keen on bringing in Wolves manager Nuno Espirito Santo as Emery's replacement.
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