Ze Augusto is not manager of the club's senior side anymore, as the four-time Brazilian champion lost to rival Palmeiras in the national league.
Ze Augusto, who initially took over Corinthians' main squad as an interim replacement for Paraguay coach Paulo Cesar Carpegiani, led the club to two victories in seven matches. He will return to command Corinthians' youth squad, the team said.
Monday's decision came less than three weeks after the club announced Ze Augusto would remain as manager of the senior side for the remainder of the season. His replacement was not immediately announced.
The 1-0 loss to Palmeiras on Sunday extended Corinthians' losing streak to five. The result also left the club in the relegation zone with 33 points from 27 matches.