Ketsbaia was named manager at the Greek club in May and signed a three-year contract with the club.
Ketsbaia has been criticised by supporters and the medica despite leading the club to the group stage of the Champions League.
“Olympiakos announces the mutual solution of its collaboration with coach Temuri Ketsbaia,” read a statement on the club’s official website.
“The technical leadership of the team will be temporarily undertaken by Bozidar Bandovic. His assistant will be Andreas Niniadis.”