“The board has cited the string of poor results where Larsen achieved five out of 27 points during his short spell at the club,” club chairman Farook Kadodia said in a statement.
“It was clear that Larsen would not achieve his targeted objective in his contract of reaching the top eight at the end of the season.”
Kadodia informed Larsen’s business manager Mike Makaab last month of the club’s intention and the decision became effective after their last match, on 20 December, which they drew 2-2 against Mamelodi Sundowns.
Maritzburg United went into the festive-season break three points off the bottom of the table and finding themselves in a relegation scrap.
Larsen joined the Team of Choice after they had played six matches and were sitting in the top eight, with eight points. Since then, they had struggled to maintain their position having only achieved one win from nine matches.
From 15 games played this season, Maritzburg have won two, drawn four and lost seven.
“The club are in the process of appointing a new head coach who will be announced by next week,” Kadodia said.
Namibians Virgil Vries and Heinrich Isaacks play for Maritzburg.