The National League club have announced the news this afternoon following last night’s defeat to AFC Fylde.
The loss was the club's seventh in eight matches. He leaves Pools 13th in the table, some eight points off a play-off place.
“Hartlepool United can announce that Matthew Bates has left his role as first team manager at with immediate effect,” a statement read.
“The club would like to place on record its thanks to Matthew for all his hard work and, in particular, the role he played in helping steer the team clear of danger during difficult circumstances last season.
Chairman Raj Singh gave his manager the dreaded vote of confidence before Tuesday's 2-1 defeat to the Coasters.
“There is a trust there,” said the club’s new owner on Monday.
“Both Matty and Craig’s track record speaks for itself. I think we have the right people at the club to keep building, pushing in the right direction.
“At the moment it is important we see how the lads we have brought in settle."
Following Bates' departure, Singh said in a statement on the club's website: “The job he did last season in ensuring this Club remained in the division should not be underestimated, especially given the difficult circumstances he was working under.
“It was absolutely vital for our long-term plans that we remained at National League level and all fans should be grateful that Matthew stood up and took on that challenge in the manner he did.
“He leaves the Club with our very best wishes and we hope he goes on to enjoy a successful career in management.”