Espanyol have lost four of their last five games in La Liga without scoring a goal and their recent form has sent them down to 16th in the standings.
"RCD Espanyol announce that Jordi Lardin and Quique Sanchez Flores have been relieved of their duties as sporting director and coach respectively," the Barcelona-based club said in a statement.
"The club has taken this decision due to the team's performances and with the desire to approach the final games of the season and the preparation for the next campaign in the best possible conditions."
The club's reserve team coach David Gallego will take charge of the first team for the remainder of the season on an interim basis.
Sanchez Flores took over at Espanyol in June 2016 after one season in charge of Premier League side Watford which had followed stints at La Liga sides Valencia, Atletico Madrid and Getafe and a year with Portuguese giants Benfica.
(Reporting by Richard Martin, editing by Ed Osmond)
