The 49-year-old, who took over at the National League North club in May, has left the Pics following Saturday’s 3-0 loss at Hereford.
The result kept the club rooted to the bottom of the table and extended their winless run to nine matches.
First team coach Richard Sneekes will take charge on an interim basis.
The club thanked supporters for sticking by them - and promised to do all they can to help avoid relegation.
A Rushall statement read: “We can announce that Rushall Olympic FC have parted company with Adam Stevens.
“It has been a really difficult decision as Adam is a man we have the utmost respect for, but one we feel we have to make in view of our Vanarama National League North status, our League points tally and current position.
“We would like to thank Adam most sincerely for his hard work and great memories created in our historic runs to the Emirates FA Cup First Round and the Isuzu FA Trophy Third Round this season and we wish him all the best for the future. Adam and his family will always be welcome here at Dales Lane.
“First Team Analyst, Kevin Bunting, will also be departing our club and we also thank him too for his appreciated efforts, wish him well. He too will also be welcome back here at any time.
“First Team Coach, Richard Sneekes, will prepare our squad, assisted by Steve Hinks and Sam Mantom, who will step up into a player-coach role, for our forthcoming games this week, away at Hanley Town in the Staffordshire Senior Cup on Tuesday evening and Saturday’s Isuzu FA Trophy away tie at Gainsborough Trinity.
“We thank all of our supporters for their continued support and superb backing. They recognise that the challenge to maintain our Step 2 status is a huge one for a club of our stature, but we will continue to give it our all and work incessantly to bring further progress and future success to our community football club.”