Moyes, who took over the club almost exactly a year ago - seven months after his dismissal by Manchester United - won just two of his 11 La Liga games in charge this season and the team are 16th in the division.
He won 12 games out of 38 altogether and his side beat Barcelona in January, but ultimately finished 12th last season.
In a statement Sociedad said: "[We] have decided to terminate the contract of first team coach David Moyes. His assistant Billy McKinley has also left the club.
"[We] wish to thank both David and Billy for the…professionalism and dedication they have shown during the course of their duties with the first team. We wish them both the best for their professional and personal future."
The former Everton manager's last game was Friday's 2-0 loss to recently-promoted Las Palmas, Former Barcelona assistant coach Eusebio Sacristan is the favourite to replace Moyes. The Spaniard has been out of a job since being dismissed by Barca's reserves in February 2015.
Eusebio, 51, coached Celta Vigo in the Segunda Division in the 2009-10 campaign but has yet to guide a Primera Division side.
Real Sociedad host Sevilla in Anoeta after the international break before travelling to the Nou Camp to face defending Spanish champions Barcelona on November 28.
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