Blind was informed of the decision to sack him at a meeting with KNVB football director Jean Paul Decossaux and technical director Hans van Breukelen on Sunday.
Fred Grim, the Holland Under-21 coach, will take charge of the senior team for Tuesday's friendly with Italy in Amsterdam, as the KNVB begin the search for a new permanent boss.
Decossaux said the governing body were left with no choice, but to dismiss Blind, due to poor results.
He said on www.knvb.nl: "Because the sporting results are disappointing and it will now be difficult to qualify for the World Cup in Russia, we feel unfortunately we have to say goodbye to him."
Blind said it was "a pity" his stint in charge of the national team had come to such a sorry end.
Blind's son Daley, the Manchester United defender, paid tribute to his father in a post on Instagram.
"Worked at the highest level, a dream for both of us as father and son," he said. "It was not easy and it has not always been that, but I'm proud of how you've always taken responsibility and never gave up!"