The Catalan giants confirmed the news through an official statement earlier Saturday, with sporting director Francisco Rufete taking over on a temporary basis until the end of the season.
Espanyol have endured a torrid time in the 2019-20 campaign, with Pablo Machin replacing boss David Gallego in October 2019, and former Barcelona defender Abelardo taking over in December.
The club returned to action earlier this month with a 2-0 home win over Alaves, however that was followed by a draw at Getafe and defeats to Levante and Real Betis.
Rufete comes in with the club rooted to the bottom of the La Liga table, eight points away from top-flight safety, with seven games to play.