Expectations were high at the start of the season after the squad received an estimated €65million of investment, but Berizzo struggled to implement a style or impose an identity on the team, and a board meeting on Friday confirmed the former River Plate defender's fate.
"Sevilla FC would like to express its gratitude to Berizzo for his professionalism, the work he has delivered and his treatment of all the members of the club since his arrival", the club said in a statement announcing the dismissal.
The 48-year-old was appointed Sevilla coach in the summer - replacing compatriot Jorge Sampaoli after he took over the Argentina national team job - having previously spent three years as boss of Celta Vigo.
It was after the match that news broke of Berizzo suffering from prostate cancer, the club and players subsequently rallying around him with public messages of support.
Berizzo was given a rapturous reception from supporters at Sevilla's Sanchez Pizjuan stadium when he returned to the dugout for last Friday's 0-0 draw at home to Levante.
Castro said: "It's a complicated and painful decision because it always is when you need to dismiss somebody, even more so with someone like Eduardo - a great person and a magnificent professional. We've taken what we believe to be the right decision together with the club's staff".
Sevilla faces Cadiz at 3 p.m. Wednesday in leg 1 of 2 in the Copa del Rey round of 16.