Webb, who replaced John Askey at the LNER Community Stadium in December, has not been able to turn the club’ fortunes around.
He won just three times in his 10 matches in charge, with two of those victories coming against lower league opposition in the FA Trophy.
His only National League success came against rock-bottom Maidstone United.
Now York are searching for a new boss after parting company with him following Tuesday night’s 3-2 defeat to Solihull Moors.
A short club statement confirmed he has been removed from his position two months after arriving.
It read: “York City FC can confirm that first-team manager David Webb has been relieved of his duties with immediate effect.
“We would like to thank David for his efforts over the last few months and wish him all the best for the future.
“The club has commenced its search for a new manager, and we will bring further communication on who will take interim charge in due course.”
The Minstermen face a trip to Southend United on Saturday in the FA Trophy.