Saturday's reverse left the north west side third from bottom and in the relegation places, four points adrift of safety.
"Celta have signed up Abel Resino as the new manager," a club statement said.
"The club want to transmit their full gratitude to Paco Herrera for his great work in recent seasons and for the unforgettable promotion to the first division achieved in the past year."
Former Atletico Madrid goalkeeper Resino was in charge of Granada last year. Among his previous coaching jobs was a spell with Atletico.
