The Habs' bench boss was relieved of his duties on Saturday morning after the Canadiens started the season 13-12-7 and sat in last place in the Northeast Division.
Randy Cunneyworth will take over as head coach for the remainder of the season, the team announced.
Martin was in his third season in Montreal, as he led the team to an 83-66-18 record in his first two years. His teams made it to the conference finals in 2010 and lost in the first round to Boston in last year's playoffs.
Earlier this season, the Canadiens fired assistant coach Perry Pearn.
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