The 51-year-old, who agreed a two-year contract with Al Wasl in May 2011, was dismissed following a meeting of the club's board on Tuesday.
Al Wasl failed to win any silverware under Maradona during his season at the helm, slipping to eighth in the 12-team UAE Pro League from sixth the previous season.
They also lost in the final of the Gulf Champions League to Bahrain side Al Muharraq and enjoyed little success in domestic cup competitions.
Under Maradona, Al Wasl were knocked out of the UAE league cup at the semi-final stage by Al Ahli, the eventual winners, and failed to progress past the second round of the President's Cup.
Maradona's sacking continued his modest record as a coach, in complete contrast to his playing career.
Maradona led his country to the 1986 World Cup and enjoyed domestic title successes in Argentina, Italy and Spain but as a coach he has yet to achieve any such highs.
He had brief spells with Mandiyu and Racing Club in his home country in 1994 and 1995 respectively but neither proved fruitful, and although he led Argentina to the World Cup finals in 2010 his side, including Lionel Messi, lost 4-0 to Germany in the quarter-finals.