The club made this announcement on Sunday.
Smith guided Villa back to the English top flight in 2019 but has paid the price for their disappointing form this season, with Friday’s 1-0 defeat at Southampton proving the last straw for club bosses.
The former European champions were 15th in the Premier League table ahead of Sunday’s matches after picking up just 10 points from their opening 11 games.
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Villa chief executive Christian Purslow said in a statement on the club’s website: “This year we have not seen the continuous improvement in results, performances and league position which we have all been looking for.
“For this reason we have decided to make a change now to allow time for a new head coach to make an impact.
“The process of replacing Dean will now begin and the club will update supporters in due course.”
Former Brentford manager, Smith took charge of Villa in October 2018 and led them to promotion via the play-offs in his first season.
The following campaign he kept them up and they reached the League Cup final.
Smith is the fifth managerial casualty in the Premier League this season.
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