The Portuguese coach was appointed manager in December 2024 with the club sitting 19th in the league, and guided them to safety with a run that included six straight wins, featuring big results against Manchester United and Tottenham.
Wolves have struggled this season, though, with no wins from 10 Premier League games and just two points, leaving them rooted to the bottom of the table.
That run of form prompted Pereira's sacking, with a 3-0 defeat away to Fulham his final game in charge - despite the manager signing a new three-year contract in September.
All of his backroom staff have also left the club.
“Vitor and his team worked tirelessly for Wolves and helped guide us through a challenging period last season, for which we are grateful," said executive chairman Jeff Shi.
“Unfortunately, the start to this season has been a disappointment and, despite our strong desire to give the head coach time and matches to find an improvement, we have reached a point where we must make a change.
“We thank Vitor and his staff for their efforts and wish them the very best for the future.”
Wolves' next Premier League clash comes against Chelsea on Saturday, November 8th.