Rovers have won just one game out of 20 in all competitions and Saturday's 1-0 defeat by Chesterfield left them a point above the npower League One relegation zone.
The club confirmed the news in a brief statement on their website, which read: "Tranmere Rovers announces that the club has parted company with manager Les Parry."
Parry's association with the Merseyside club goes back to 1991, when he joined the staff as a physiotherapist.
The 54-year-old took over as manager, initially on an interim basis, when John Barnes' ill-fated spell at Prenton Park ended in October 2009.
Source: PA
Source: PA