Pressure had been mounting on Beale after their heavy defeat to PSV Eindhoven in the Champions League play-off.
A subsequent defeat against Old Firm rivals Celtic in the Scottish Premiership incurred criticism from fans.
The 3-1 reverse against Aberdeen – the third league defeat of the season – proved to be the final nail in the coffin for Beale.
The Gers have announced that Steven Davis will lead the side on an interim basis until a new permanent is appointed.
“I’d like to thank Michael for his dedicated work since he re-joined the club as manager last November,” Rangers chairman John Bennett said.
“It is clear that results have fallen well short of the board’s, Michael’s and our supporters’ expectations.
“The search process for the new manager is already underway. I wish Steven Davis and the interim management team every success – they will remain in charge for as long as it takes to make the right appointment.”
Beale, who had previously served as an assistant to Steven Gerrard at Ibrox, succeeded Giovanni van Bronckhorst last November and enjoyed a productive start to his spell.
However, his side finished second behind arch-rivals Celtic in the Scottish league and failed to lift any silverware.
Beale had seemingly revived his fortunes with three consecutive wins against St Johnstone, Real Betis and Motherwell but couldn’t save his job after the defeat to Aberdeen.
Rangers are currently third in the Premiership rankings, trailing St Mirren by three points and seven points adrift of leaders Celtic.
Davis will oversee the Gers in the Europa League group-stage encounter against Cyprian club Aris Limassol this week.
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