The Blues confirmed the sacking on Sunday evening after Chelsea’s 2-0 home loss to Aston Villa, the latest disappointing result under Potter.
Potter had been appointed as Thomas Tuchel’s replacement in September, but only managed 12 wins, eight draws and 11 losses from 31 games in charge.
Under Potter, Chelsea had reached the UEFA Champions League quarter-finals, where they will meet Real Madrid, but have languished in midtable in the Premier League, currently sitting 11th. Bruno Saltor will take over in the interim.
Chelsea owner Todd Boehly said: “On behalf of everyone at the club, we want to thank Graham sincerely for his contribution to Chelsea.
“We have the highest degree of respect for Graham as a coach and as a person. He has always conducted himself with professionalism and integrity and we are all disappointed in this outcome.
“Along with our incredible fans, we will all be getting behind Bruno and the team as we focus on the rest of the season.
“We have 10 Premier League games remaining and a Champions League quarter final ahead.
“We will put every effort and commitment into every one of those games so that we can end the season on a high.”
The Blues have been linked with former Tottenham manager Mauricio Pochettino and ex-Bayern Munich boss Julian Nagelsmann already.