The Cards - defeated in the play-offs last season - have struggled in recent months and Saturday's loss at Oxford City was their seventh in nine National League games.
Woking, also out of the FA Cup to Step 4 Ramsgate, will begin their search for a new boss immediately.
The club finished fourth last season as the Surrey club enjoyed their best season for many years.
But with injuries crippling the squad, results dipped after a solid start and the decision was made to dispense with Sarll at a meeting on Sunday.
"Woking Football Club can confirm that it has relieved Manager Darren Sarll of his duties with immediate effect," their statement read.
"The club would like to place on record its sincere thanks to Darren for one of the club’s most successful seasons in recent history and wish him well in his future endeavours both on and off the pitch.
"Assistant Manager Ian Dyer has been asked to take charge of the First Team for the upcoming home fixtures against Oldham and Chesterfield."