A brief statement on the club's official website read: "Following a meeting this afternoon, the chairman, the Board of Reading Football Club and Brendan Rodgers have agreed by mutual consent that Brendan Rodgers will leave his position as first-team manager with immediate effect.
"Reading Football Club will make no further comment at this stage."
The Royals are only three points better off than third-from-bottom Sheffield Wednesday, who sacked manager Brian Laws earlier this week.
Rodgers, who began his coaching career with Reading before moving to Chelsea in 2004, only took charge of first-team affairs at the Madejski Stadium in June following the resignation of Steve Coppell.
The Royals agreed a substantial compensation package with Watford to secure the services of the Northern Irishman, who had impressed many observers in his first managerial role at Vicarage Road.
Rodgers was handed the task of guiding Reading back to the Premier League but a poor start to the season saw the club struggling near the foot of the table.
And, despite an improved run of results in recent weeks, including a first home victory of the campaign against Blackpool on November 21, they remain in a perilous position.
A 1-1 home draw with Scunthorpe at the weekend proved to be Rodgers' final game in charge.
After the match, he praised the club's supporters for their understanding, saying: "The crowd are frustrated but they have been great because they can see we have young players, can see what we are trying to do and how we are going to be."
However, the 36-year-old now appears to have paid the price for his side's dismal form, having claimed only five league victories during his time in charge.
The club have yet to confirm who will take charge for Saturday's trip to Bristol City.
Bristol City v Reading To Win Both Halves: Reading 16/1