Dall’Oglio oversaw Dijon’s return to the top flight in 2016 and had started this season with three wins.
But 12 matches followed without victory before the club’s fourth win of the season, against rock-bottom Guingamp on December 5.
That was followed, however, by three straight losses that has seen the club plummet to 18th in the 20-strong league.
Assistant coach David Linares will take over until a new coach is named, the club said.
“[Club president] Olivier Delcourt and all of Dijon FCO would like to thank Olivier Dall’Oglio for having participated in the development of our club and wish him all the very best as his career continues,” Dijon’s statement read.
Dijon return to action in the Coupe de France against fourth-tier Schiltigheim on January 5 before hosting high-flying Montpellier a week later.
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