The Croatian took charged of the Middle Eastern club five months ago.
But Bilic won just three of his 15 matches as Al-Ittihad gaffer.
And the 50-year-old is now looking for a new job after being shown his marching orders in the wake of a 2-0 home defeat to Al-Hilal.
Former boss Luis Sierra has already been confirmed as Al-Ittihad’s new manager.
And he faces the tough job of beating the drop with just nine games left until the end of the season.
Al-Ittihad – who have eight Saudi Pro League titles to their name – released a statement confirming the news on Sunday.
It read: “After reviewing the modest results of Ittihad Club in the past period, which did not rise to expectations despite the efforts exerted by the board to provide the coaching staff with everything they needed to put Ittihad back on the right track.
“The Board has decided to terminate the contract of Croatian coach Slaven Bilic and the assistant coaching staff.
“The Board thanks them for everything they did.”
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