Under Hignett, who has been manager since February 2016, Hartlepool have won only 15 games, out of 52.
“I would like to place on record my thanks to Craig for all of his efforts,” said Chairman Gary Coxall.
“He has given everything for the Club during his time in charge and he leaves with our very best wishes for the future.
“The search for a new Manager will begin immediately and it won’t be a long, drawn-out process – we want to get the right man appointed as quickly as possible.”
Sam Collins has been announced as caretaker manager of the first team.
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