"The services of Mr John Dyson have been terminated with immediate effect," the West Indies Cricket Board (WICB) said in a news release. "Assistant coach Mr David Williams will fill this position on a temporary basis."
Williams is to lead the team at the Champions Trophy in South Africa next month while former Test spinner Lance Gibbs will serve as manager.
West Indies start their campaign in the one-day tournament against Pakistan in Johannesburg on September 23.
The 55-year-old Dyson's makeshift team suffered defeat in two Test matches and all three one-day internationals against visiting Bangladesh last month before restoring some pride by winning a Twenty20 game against the same opposition on August 2.
PLAYER BOYCOTT
West Indies' leading players boycotted the Test matches due to a dispute over contracts and payments and although they ended their protest the WICB stuck with the back-up squad that had made themselves available.
Former opening batsman Dyson played 30 Tests for Australia between 1977-84, scoring 1,359 runs at an average of 26.64.
He became coach of Sri Lanka in 2003, spending almost two years there before taking the reins at West Indies in 2007.
Dyson suffered embarrassment this March when West Indies miscalculated the Duckworth-Lewis target at the end of the opening one-dayer against England in Guyana.
The home team, chasing a 50-over target of 270 for seven, were offered the chance to go off due to rain and bad light and Dyson beckoned the batsmen off the field.
However, West Indies were one run short of the Duckworth-Lewis target, the method used to calculate results when the full overs are unused, and with no opportunity to return to the field England were declared winners with West Indies on 244 for seven from 46.2 overs.
"I was on the wrong column [on the sheet] ... I thought we were ahead of Duckworth-Lewis but in fact we were behind by one run," Dyson said.
"There was a lot of noise going on and it was my responsibility so that was it. I accept responsibility for it and I've apologised to the team and that's all I can do. It was my mistake."
Photograph: Reuters