Assistant coach Pierre Littbarski is to take over, Wolfsburg said Monday.
The 2009 champion, Wolfsburg (5-8-8) is 12th with 23 points, one point above the relegation zone. It has one win in its last 11 league games following a 1-0 loss at Hannover on Saturday.
McClaren joined Wolfsburg last year after coaching Twente to the Dutch league championship. He was fired by England after The Three Lions failed to qualify for the 2008 European Championship.