A former Lions player of nine seasons with over 400 club appearances to his name, Ellis was appointed to the role on a two-year deal last summer.
He leaves the club 16th in the Northern Premier League, eight points adrift of the play-off places.
His final game was a 1-0 victory away at Warrington Town in the FA Trophy second round, which was overshadowed by a controversial incident which saw Yellows goalkeeper Tony Thompson sent off for retaliating to a supporter who had allegedly urinated in his drinks bottle.
In a club statement, Guiseley said: “We appreciate that our supporters may be surprised and disappointed with this decision given Danny’s long service to the club as a player and having only recently returned to the club as manager.
“Danny took over in May and had to build a new team following relegation.
“However, the board of directors are ambitious for the club and felt that, given the investment of time and commitment needed to deliver these goals, a change was needed now to give the squad the best chance of achieving our aims this season.”
Danny Forest will take over as interim manager ahead of Saturday’s trip to Liversedge.
Photo credit: Guiseley
Keep up-to-date with our exclusive email newsletters.
Subscribe