Sunderland appointed the former Wales boss on a two-and-a-half-year deal in November after Simon Grayson was sacked in October after only 18 games in charge. The club said Coleman's assistant Kit Symons had also left.
"Sunderland AFC announces that manager Chris Coleman and his assistant Kit Symons have been released from their contracts," the club said in a statement.
"The club would like to place on record its sincere thanks to Chris and Kit for their tireless efforts in what has been a hugely disappointing season."
Following the announcement of the 47-year-old Coleman's departure, Sunderland owner Short released a statement saying the club would be sold to an international consortium of investors led by Eastleigh FC chairman Stewart Donald.
He said the deal was subject to approval from the English Football League.
Sunderland are bottom of the second-tier with 34 points from 45 matches.
(Reporting by Shrivathsa Sridhar in Bengaluru; Editing by Toby Davis)
