The move came 28 games into his tenure with the Broncos, in which he went 11-17 despite winning his first six games.
The Broncos named running backs coach Eric Studesville interim coach. He and team COO Joe Ellis scheduled a news conference for 1 p.m. ET on Tuesday.
Studesville has never been a head coach in the NFL. He joined the Broncos in January after spending six seasons coaching running backs in Buffalo.
"My decision to relieve Josh McDaniels as head coach was not taken lightly," team owner Pat Bowlen said. "I will always be appreciative of his passion, enthusiasm and hard work, and I thank him for his efforts.
"In the end, I was not satisfied with the results and the direction this team was headed."
McDaniels' dismissal came one week after Bowlen said he was not interested in making a head coaching change. Less than a day later, however, Bowlen backtracked and said he would reevaluate McDaniels after the season.
Denver Broncos Fire Coach
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