The former World Cup winning captain's coaching days were numbered following the resignation of the club's board last month and their replacements took the decision to fire him after a meeting on Tuesday.
"Following a meeting held by the board of directors of Al Wasl Football Company to evaluate the technical staff of Al Wasl under the leadership of coach Diego Maradona, it was decided to terminate the services of coach Diego Maradona and his technical staff," a club statement said.
After being sacked as the national coach of Argentina, Maradona's coaching career has not reached any heights, failing to win a single title with Al Wasl.
Al Wasl slipped to eighth in the 12-team UAE Pro League, two places lower than the previous season. They even lost in the final of the Gulf Champions League to Bahrain side Al Muharraq and had no success in the domestic cup competitions.
Al Wasl also failed to progress to the finals of the UAE league cup and failed to get past the second round the President's cup.