According to the Lancashire Evening Telegraph, Appleton was asked to attend a meeting with global advisor Shebby Singh where he was told that owners Venky's had decided to part ways.
A club statement read: "Blackburn Rovers FC can confirm that Michael Appleton has been relieved of his duties as manager along with assistant manager Ashley Westwood, first team coach Darren Moore and head of senior recruitment Luke Dowling."
Appleton was ostensibly Blackburn's long-term replacement for Henning Berg, who lasted only 57 days in the job before being sacked in December.
However, Appleton, who won only four games in 15 and required a last-minute equaliser from David Dunn to prevent a defeat to bitter rivals Burnley at the weekend, has lasted only 67 days himself.
Appleton left Portsmouth to join Blackpool in November and spent only 13 games as the club's manager before moving to Ewood Park in January.
His exit means that, incredibly, Blackburn are now searching for their sixth manager of the season.
Steve Kean started the 2012-13 campaign as Rovers boss before caretaker Eric Black spanned the gap to Berg.
When the club's former defender was sacked, Gary Bowyer took over caretaker duties before the arrival of Appleton. It is reported that Bowyer will resume the role.