Former Sevilla and Paris Saint-Germain boss Emery took over from the long-serving Arsene Wenger in May 2018 and went on to lead the Gunners to the Europa League final last term, ultimately losing out to Premier League rival Chelsea, goal.com reported.
A summer of recruitment saw Nicolas Pepe, Kieran Tierney, David Luiz, Dani Ceballos and exciting young forward Gabriel Martinelli join the ranks as Arsenal planned to push for a return to Champions League football.
Fortune hasn't favored the Gunners of late, however, with the club sitting eighth in the English top-flight and it is now without a win in seven matches in all competitions, forcing the board's hand to make a change in the dugout following Thursday's 2-1 home defeat by Eintracht Frankfurt.
A statement released by the club's official website reads, "We announce today that the decision has been taken to part company with our head coach Unai Emery and his coaching team.
"The decision has been taken due to results and performances not being at the level required.
"We have asked Freddie Ljungberg to take responsibility for the first team as interim head coach. We have full confidence in Freddie to take us forward.
"The search for a new head coach is underway and we will make a further announcement when that process is complete."
Nonexecutive director Josh Kroenke added, "Our most sincere thanks go to Unai and his colleagues who were unrelenting in their efforts to get the club back to competing at the level we all expect and demand.
"We wish Unai and his team nothing but future success."
Ljungberg now faces a trip to relegation-battling Norwich on Sunday tasked with arresting Arsenal's longest winless streak since February 1992 and a return to challenging for a top-four finish.
The defeat by Frankfurt in what proved to be Emery's final match in charge also means Arsenal is not yet through to the knockout stages of the Europa League, although only a heavy defeat away to Standard Liege in its final group fixture will likely prevent its progress.
Arsenal will again make a pitch to former player Mikel Arteta as it seeks to replace the sacked Emery.
Manchester City assistant head coach is once more one of the top candidates, along with Carlo Ancelotti, Max Allegri, and Wolves’ Nuno Espirito Santo, The Independent reported.
Brendan Rodgers has previously been highly considered, but there is a realization he would be almost impossible to price from Leicester City right now, and Patrick Vieira’s status has slightly lessened given a drop-off in results with Nice.
Arteta had previously been very close to the job in May 2018, only for Arsenal to then decide on Emery. The former midfielder had felt a bit stung by that but is so interested in a managerial career in his own right, and has such affection for the club, that he would be willing to reconsider any offer.
Arsenal had not planned to yet replace Emery, and had hoped a winnable run of games could bring the team out of the slide they’d entered, so that has meant there had been no formal approaches to a potential replacement.
A few potential candidates had been sounded out through intermediaries, however, and it is understood Arteta was one.
Ancelotti and Nuno would bring with them Premier League pedigree while Allegri, who Arsenal has met with, has long sought a job in English football. However, there are some suggestions he is holding out for the Manchester United job.