The Italian took over as coach of the Villains after they were relegated from the premiership last season under Remy Garde.
The former chelsea manager was sacked after 124 days in charge following a poor run of results that saw the club win one of their opening 11 Championship games.
A club statement read: "Aston Villa Football Club has parted company with manager Roberto Di Matteo.
"The club decided to act following a run of disappointing results which has the left the team occupying 19th position in the Championship.
"The club would like to place on record its appreciation to Roberto for all his efforts in helping rebuild the squad and wish him well for the future.
"Steve Clarke will take over as caretaker manager during the search for a new manager."
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