Following Monday’s 3-1 defeat to Everton, Swansea are bottom of the Premier League, four points from safety.
And Swansea chairman, Huw Jenkins has made the decision to dismiss Clement in a bid to revive their fortunes.
Jenkins said: “To change the manager, especially at only the halfway point of the season, is the last thing we wanted to do as a club.
“We had three different manager last season and as a result we all wanted to give Paul as much time as possible to turn things around.
“But we felt we couldn’t leave it any longer and needed to make a change to give us the best chance of an uplift and a turnaround in fortunes with the club bottom of the Premier League.
Clement leaves the Liberty Stadium with a league record of just 11 wins in 36 games with 20 losses.
Jenkins added: “Paul has been at the club for 12 months and what he achieved in the second half of last season to keep us in the top flight was a tremendous feat. For that, and his effort and commitment this season, it goes without saying that the club thanks him for his work, together with Nigel (Gibbs) and Karl (Halabi).
“I have had an excellent working relationship with Paul and we are all, including the owners, surprised and disappointed it hasn’t worked out this season.
“We wish Paul every success in his career going forward.’’
Tony Pulis, who was sacked by West Brom last month, is the early favourite to take over from Clement.