Club owner Steve Morgan has ended McCarthy's reign with Sunday's 5-1 home defeat to West Brom the final straw.
Some fans vented their anger towards the directors box during the game and a couple of hundred demonstrated outside the ground long after the final whistle.
Wolves released a statement which read: "Wolves have today announced that manager, Mick McCarthy, has left the club with immediate effect.
"The Board took the difficult decision to terminate Mick's contract after a run of form which has seen Wolves pick up only 14 points in the last 22 League games, after a promising start to the season, culminating in yesterday's 5-1 defeat at home to West Bromwich Albion.
"Terry Connor will take charge of team training in the interim until a new manager is appointed.
"The Board would like to place on record their sincere thanks and appreciation to Mick McCarthy and he leaves with the very best wishes of everyone connected to the club."
A planned pre-match protest against Aston Villa boss Alex McLeish turned into a low-key affair yesterday, attended by no more than 100 fans.
There were a few banners such as 'Had Your Chance McLeish Out' and a few chants along the lines of 'You'll be sacked in the morning', but it was ultimately more for amusement value of other Villa fans looking on.
But the Villa manager is the new odds-on favourite to be the next Premiership boss for the chop.