The pair met for a face-to-face meeting just after 9am, with the Portuguese's departure confirmed by the club at 9.46am.
Mourinho, 55, spent a few hours saying his goodbyes and was pictured being driven out of the training ground at 12.24pm.
Woodward addressed United's misfiring players to explain the decision and urge them to step up for the rest of the season, according to Metro.
Sunday's 3-1 thrashing at Liverpool seems to have been the last straw for the club, with the head coach admitting his team "couldn't cope" with their opponents' intensity.
The decision to sack Mourinho brings to an end his two-and-a-half years in charge at Old Trafford, in which he won the League Cup and Europa League in 2017.
All the latest from a dramatic day at Old Trafford
- MOU AND POG AT WAR The 22 incidents that helped cost Jose his Utd job
- YOU DO ONE AS WELL Gary Neville tells Paul Pogba to follow Jose out the exit
- NO CAR GO Carrick takes the reigns but Utd will look externally for caretaker
- NEIL ASHTON Mourinho destroyed a great football club leaving a squad of average players
- POG HAS HIS DAY Pogba takes cryptic swipe at Mourinho minutes after Utd sacking
- 'HAPPY XMAS' Man Utd fans given 'best Christmas present ever' after club sack Jose
- MARTIN LIPTON Jose Mourinho leaves Man Utd a broken manager, his legacy has been marred
- MAYBE FACED ASSASSIN Solskjaer emerges as a leading candidate to replace Mourinho
- NEW BEGINNINGS Pogba and Martial set for Old Trafford stay after Mourinho axe
- DAN KING Five reasons why Jose Mourinho had to be sacked by the United board
- Follow all the latest Man Utd news on Jose's sacking in our LIVE BLOG
His departure is likely to cost Manchester United around £24million in compensation dependent on various clauses within his contract – an extension to which he signed in January.
Mourinho leaves Manchester United sixth in the Premier League, 19 points behind league leaders Liverpool, and 11 from the top four.
The club have confirmed that Michael Carrick will act as interim head coach as they look to appoint a caretaker manager until the end of the season.
They have signalled their intention to appoint a permanent replacement by then, following a thorough search for a new man.
The hierarchy have indicated they were unhappy with Mourinho's poor results, poor brand of football and inability to bring through youth players regularly.
A club statement read: "Manchester United announces that manager Jose Mourinho has left the club with immediate effect.
"The club would like to thank Jose for his work during his time at Manchester United and to wish him success in the future.
"A new caretaker manager will be appointed until the end of the current season, while the club conducts a thorough recruitment process for a new, full-time manager."
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