Rosenborg lost 2-1 at home to Ireland's Sligo Rovers in the first leg of the European competition's second qualifying round on Thursday. An own goal by the Irish goalkeeper led to the Trondheim team's scoring.
The club announced in a press release that the relationship between Rosenborg and Hansen was terminated with immediate effect.
Club chairman Ivar Koteng said to NTB: “We have seen a lack of development. The board made the decision on Friday and informed Hansen on Monday morning.”
Per Joar Hansen had been strongly criticised among Rosenborg fans of playing boring football.
Hansen, who also coached Norway's U-21 side, returned to Rosenborg in 2012, seven years after his first stint with the club ended following a string of poor results.
A new temporary coach will be announced soon.
The 22-time Norwegian champions play Sligo Rovers in the return leg on Thursday.
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