Blackburn sit second bottom – three points from safety – in the Championship after 31 games.
They were beaten by Manchester United in the FA Cup on Sunday thanks to Zlatan Ibrahimovic's second half strike.
They have won just two league games in 2017 – and just seven all season – and face the prospect of relegation to League One.
Owen Coyle has been sacked by Blackburn
Owen Coyle has been sacked by Blackburn with the club second bottom in the Championship
Coyle was appointed on a two-year deal in June amid controversy due to his past at Burnley.
But he lasted less than a season and has left Ewood Park with his backroom staff.
"Blackburn Rovers wish to announce that manager Owen Coyle has left his role at Ewood Park by mutual agreement," a statement read.
"Assistant manager Sandy Stewart, first team coach John Henry and goalkeeping coach Phil Hughes have also left the club.
Championship predicted table: Who will earn promotion to the Premier League?
Fri, February 17, 2017
Who will earn promotion to the Premier League and who will suffer relegation to League One, according the the stats geeks at Football Web Pages?
Getty Images•Football Web pages
1 of 26
Where will your team finish 2016/17 based on our predicted Championship table?
"The decision has been taken in order to give the club the best possible chance of climbing to a position of safety in the Championship in the remaining 15 games, which starts with the big trip to Burton Albion on Friday night.
"The club would like to place on record its thanks to Owen and his staff for all their efforts this season and we wish them well for the future.
"The search for a new manager will begin with immediate effect."
Rowett, who was sacked by Birmginham is the favourite to replace Coyle at Ewood Park, with Betway pricing him at 5/2.
Other candidates include Tim Sherwood, Jimmy Floyd Hasselbaink, Kenny Jackett, Steve Cotterill and Mark Warburton.