The 57-year-old joined the German side in March 2024, 18-months after he was sacked by Premier League side Southampton.
Hasenhuttl struggled at Wolfsburg, winning 17, drawing nine, and losing 18 of his 44 games across all competitions with the club.
Winless in their last eight Bundesliga games, Wolfsburg finally decided to pull the trigger as they sit down in 13th with two games remaining.
U19 coach Daniel Bauer will take charge of those final games with the highest Wolfsburg can finish being 9th.
The club released a statement confirming their decision, saying: “VfL Wolfsburg and Ralph Hasenhüttl are going their separate ways after the 57-year-old was relieved of his duties as Wolves head coach with immediate effect on Sunday evening.
“Assistant coaches Craig Fleming and Patrick Hasenhüttl, analyst Martin Raschick and Rainer Widmayer, who has been acting as a link between the first team and the VfL academy, are also leaving the Green-and-Whites’ coaching staff.”