Karanka leaves with the club 19th in the table with 11 games to play, having scored only two goals in eight league games in 2017.
"Middlesbrough Football Club can today confirm the departure of Head Coach Aitor Karanka," a statement on the club's official website confirmed. "Following discussions, both parties have agreed that it is in the best interests of the club to make this change.
"The club would like to thank Aitor for all his hard work over the past three-and-a-half years and for the success we've had during that time. We wish him all the best for the future."
Karanka said: "I'd like to thank Middlesbrough for a wonderful opportunity and the players, staff and all the people at the club who I have worked with.
"I'd also like to thank the fans for their support. This club will always hold a special place for me and I wish everyone connected with Middlesbrough Football Club the very best for the future."
Middlesbrough confirmed Steve Agnew will step up from his role as assistant head coach to take control of first team affairs with immediate effect.
Boro host Manchester United on Sunday before trips to Swansea and Hull
After leaving Patrick Bamford and Stewart Downing out of the squad for the FA Cup quarterfinal defeat against Manchester City on Saturday, Karanka said: "Where the players show me that they are ready to play and they are fighting and they are going to fight for the club is on the training ground every day.
"I am with them every day and on Friday, I will always choose at least 18 fighters."
Karanka, previously an assistant to Jose Mourinho at Real Madrid, was appointed in 2013 and led the club to promotion in 2016.
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