The 51-year-old coach has parted company with the club following the 3-1 defeat at fellow promoted club West Bromwich Albion on Sunday.
Hughton leaves the club with an overall record of 39 wins, 14 defeats and 17 draws in all competitions.
The club said in a statement on their website: “The board would like to place on record their thanks to Chris for his considerable efforts during the club’s transition from Championship to Premier League football. Chris has shown exceptional character and commitment since being appointed manager in October 2009. The club wishes him well for the future.
“Regrettably the board now feels that an individual with more managerial experience is needed to take the club forward.”
Hughton leaves the club just seven months after guiding them back into the top flight and with them sitting 11th in the table.
The sacking comes just over a month after they beat bitter local rivals Sunderland 5-1 and won 1-0 at Arsenal.
That win at the Emirates Stadium in early November was their last in the Premier League, although they also secured a 1-1 draw with champions Chelsea in their last home game.
Hughton, whose contract was due to expire at the end of the season, had already been the subject of intense speculation over his job earlier in the campaign.
The club said in a statement following the 4-0 Carling Cup defeat at home to Arsenal in October: “Chris is our manager and will remain our manager, and it is our intention to re-negotiate his contract at the end of the year.”
