Dowie leaves the club along with backroom staff Tim Flowers and Bob Dowie, having just shelled out seven figure money on Daniel Fox and Scott Dann. Coventry are only four points above the drop zone, having lost to Preston North End on Saturday.
Coventry now have two tricky games in the space of 4 days, facing Cardiff City on Tuesday night and second placed West Bromwich Albion on Saturday on the FA Cup Fifth Round.
BBC Radio Five Live have this morning immediately linked Walsall manager Richard Money with the vacant position, although no official comment on the sacking has been made by the Coventry directors.
More on this story as it develops...