The 45-year-old's departure was confirmed by the Black Cats on Sunday, a little more than 24 hours after a 3-0 defeat at West Brom left them rooted to the foot of the Barclays Premier League table.
Sunderland AFC statement: "Sunderland AFC confirms that it has parted company with head coach Paolo Di Canio this evening.
"Kevin Ball will take charge of the squad ahead of Tuesday night's Capital One Cup game against Peterborough United and an announcement will be made in due course regarding a permanent successor.
"The club would like to place on record its thanks to Paolo and his staff and wishes them well for the future."
Di Canio arrived on Wearside amid a blaze of publicity in March as owner Ellis Short took a gamble on the former Swindon boss after deciding to end Martin O'Neill's tenure.
It proved a controversial appointment as critics cited reports of his alleged fascist sympathies, prompting the club to make a stout defence of their new manager.
However, it was never likely to be dull as Di Canio embarked upon what proved a colourful six months in charge.