Mugabe has been a controversial figure throughout his 30-year reign as president of the African nation.
In astonishing scenes overnight, tanks were seen rolling in towards the presidential palace in the Zimbabwe capital.
The military siezed power from the president, who is now said to be safe and under house arrest.
The leader of Zimbabwe’s war veterans, Chris Mutsvangwa, hailed the military’s move as the “correction of a state that was careening off a cliff” and said the military administration would usher in a “better business environment” after years of disinvestment and economic decline.
ZIMBABWE MILITARY COUP – LATEST
The statement from the army read: “Last night the first family was detained and are safe, both for the constitution and the sanity of the nation this was necessary. Neither Zimbabwe nor ZANU are owned by Mugabe and his wife.
“Today begins a fresh new era and comrade Mnangagwa will help us achieve a better Zimbabwe.”
Many would say a coup against the Zimbabwe leader is long overdue.
Mugabe took over as president in 1987 after seven years as prime minister of the African nation.
Mugabe, a former school teacher, was 63 when he took over as president as leader of the ZANU-PF party.
Born on February 21, 1924, in Rhodesia, he is now aged 93. Up until yesterday he was the oldest world leader.
He has been praised as a revolutionary by many in Africa after helping free Zimbabwe from British colonial rule.
However, he has overseen economic mismanagement, widespread corruption and discrimination against white farm owners.
Zimbabwe has also been criticised for human rights abuses under his presidency.
The 2000s saw massive inflation after maize production collapsed when Mugabe supporters invaded white-run farms.
By the end of the decade three in every four people in the country were relying on food aid.
In 2007 inflation had hit 7,600 per cent.
Recent anger surrounds speculation he wished for his young wife Grace Mugabe to take over from him.