Bayern, German champions last year under Ancelotti and for each of the last five seasons, have had a mixed start to the campaign.
They suffered a 2-0 defeat by Hoffenheim before drawing 2-2 at home to Wolfsburg in the league, having been two goals ahead.
In their official club statement, Bayern said they had ‘split’ from the 58-year-old following internal meetings since the midweek defeat by PSG.
Ancelotti’s assistant Willy Sagnol will take over on a temporary basis, with Hoffenheim boss Julian Nagelsmann the early favourite replace the Italian full-time.
Chief executive Karl-Heinz Rummenigge meanwhile has previously discussed the mutual admiration between himself and ex-Borussia Dortmund coach Thomas Tuchel, and there is a desire to see a German manager take control at Bayern again for the first time since Jupp Heynckes’ reign, which ended in 2013.
Rummenigge said in a statement on the Bayern website: ‘The performance of our team since the start of the season did not meet the expectations we put to them.
‘The game in Paris clearly showed that we had to make decisions. Hasan Salihamidžić [Bayern sporting director] and I spoke to Carlo today and informed him of our decision.
‘I would like to thank Carlo for the cooperation and I regret this development. Carlo is my friend and will remain so, but we had to make a professional decision in the spirit of Bayern.
‘I now expect the team to have a positive reaction and absolute performance, so we can reach our goals for this season.’
Four of Ancelotti’s coaching staff – Italians Davide Ancelotti (Carlo’s son), Giovanni Mauri, Francesco Mauri and Mino Fulco – have also left Bayern.
Former Real Madrid and Chelsea manager Ancelotti took charge of Bayern in July 2016 following Pep Guardiola’s departure to Manchester City.
He continued Bayern’s domination of the Bundesliga, winning the league by 15 points from second-placed RB Leipzig. He has also won the pre-season German Super Cup both this and last season.
However they were beaten 3-2 at home in the German Cup semi-finals by Borussia Dortmund, and in the 2016-17 Champions League quarter finals by Real Madrid. Bayern have not won the major European trophy since 2013.
There have also been problems off the pitch – goalkeeper Manuel Neuer is out until after Christmas with injury and his replacement, Sven Ulreich, has not convinced, making a bad error against Wolfsburg to concede the first goal.
Main striker Robert Lewandowski has criticised the club’s transfer policy, saying they need to spend more money, while there is also disharmony among German fans and media due to Thomas Muller’s lack of game time.
The signing of James Rodriguez on a two-year loan has divided opinion, while the retirements of Philipp Lahm and Xabi Alonso have left a leadership vacuum.
On Wednesday night, Bayern were outplayed in Paris. Only Barcelona and Real Madrid have ever inflicted heavier defeats on Bayern in the Champions League. They are second in the group with three points from two games, level with Celtic.
They are third in the Bundesliga, with 13 points from six games, trailing leaders Dortmund by three points.
Their next fixture is away to Hertha Berlin on October 1 – where 40-year-old Sagnol will take charge – while their next Champions League game is at home to Celtic on October 18.
By: Daily Mail