The Daniels parted company with the 35-year-old, pictured, with the club fourth from bottom following Monday night's heavy 7-1 defeat at Hyde United, their sixth reverse in nine league outings.
Staff, who took sole charge last year after Wayne Hatswell accepted a coaching role at Newport County and guided the club to safety with a 3-2 win at the Zeeco Stadium over Witton Albion on the last day of the season in April to stay up, had guided the club into the next round of the FA Cup with a 2-1 win over Leamington when the sides replayed last week.
In a statement announcing his departure, officials, who are looking for a "change of direction" and a "fresh approach", said they expected to be able to announce who'll be in charge for their trip to Coleshill Town at the weekend in the FA Cup Second Qualifying Round "well ahead of Sunday's tie".
David Staff
Staff first joined the Daniels on loan as a player from Rushden and Diamonds in 1998 and enjoyed four spells as caretaker manager after a playing career that took in Boston United in the Football League as well as King's Lynn Town, Nuneaton Borough, Brackley and Rugby Town.
Stamford AFC chairman Bob Feetham said: "It is the right decision at this time but it has been enormously difficult to make. I have worked with several managers and none have matched Staffy's loyalty or integrity.
"All of us at the club wish him well for the future. He has done a real job for us on more than one occasion - and will no doubt do likewise in any future football venture."
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