Former Chelsea midfielder Lampard, 42, leaves with the club ninth in the Premier League table after last week's defeat at Leicester City, having won once in their past five league matches.
His last game in control was Sunday's 3-1 FA Cup fourth round win against Championship side Luton.
Lampard was designated on a three-year contract when he supplanted Maurizio Sarri at Stamford Bridge in July 2019.
He guided them to fourth place and the FA Cup last in his first season in control, yet the Blues have now endured as numerous thrashings in their previous eight association games as they had in their past 23.
Lampard didn't sign a solitary player during his first season as the club were working under an exchange ban, yet spent more than £200m on seven significant signings the previous summer, including £45m on Leicester's Ben Chilwell and £71m on midfielder Kai Havertz from Bayer Leverkusen.
It is the most Chelsea have spent in one summer, overshadowing the £186m they contributed toward the beginning of the 2017-18 season.
Lampard is Chelsea's unequaled record scorer, with 211 objectives for the club somewhere in the range of 2001 and 2014, and is likewise joint-seventh on the rundown of England players with the most covers, having shown up for his country more than a long time from 1999.
During his 13 seasons as a player at Stamford Bridge, he showed up and won 11 significant prizes - including four Premier League titles and the 2012 Champions League.
His first administrative posting was at Derby. In his one season in control, they arrived at the Championship play-off conclusive, where they lost to Aston Villa.
Lampard turned into the tenth full-time supervisor designated by Roman Abramovich since the tycoon purchased the club in 2003.
As indicated by football account columnist Kieran Maguire, Abramovich has burned through £110m on terminating chiefs before Lampard's excusal.
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