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He has paid the price for a poor start to the 2026/27 season by last season's play-off semi-finalists.
Scunthorpe are third bottom after 14 games, winning just three games so far this term and suffering ten defeats.
The Iron have acted following Tuesday's 4-1 defeat at Tamworth.
The decision ends Butler's two-and-a-half year reign at the Attis Arena.
He led Scunthorpe to promotion from National League North in 2024/25 and guided them to a fifth-placed finish last season, the Iron eventually losing in the play-off semi-finals to Rochdale.
📰 𝐂𝐋𝐔𝐁 𝐒𝐓𝐀𝐓𝐄𝐌𝐄𝐍𝐓: 𝐀𝐧𝐝𝐲 𝐁𝐮𝐭𝐥𝐞𝐫 Following a meeting of the Board of Directors this morning, Scunthorpe United can confirm first team manager Andy Butler has been relieved of his duties. Full statement 👉 https://t.co/7jXF8md7gW Andy departs with our gratitude for his fantastic commitment, work rate and dedication during his whole time at Scunthorpe United, of which we undoubtedly know he gave his all. We wholeheartedly wish Andy the very best for the future, and look forward to watching him continue to grow and flourish in the game wherever it takes him next. The club will be making no further comment at this time, with further details will be provided in due course. #UTI #IRON
— Scunthorpe United FC (@SUFCOfficial) October 28, 2026
But they have failed to regain similar form this season.
In a statement, Scunthorpe said: "Following a meeting of the board of directors this [Wednesday] morning, Scunthorpe United can confirm first team manager Andy Butler has been relieved of his duties.
"Taking charge in May 2024, Butler steered the Iron to promotion from National League North in his first full campaign via the play-offs, before building on that momentum with a fifth-placed finish in the National League last season, narrowly missing out on back-to-back promotions after being edged out at the semi-final stage.
"As a defender, coming through the club’s academy system, Butler would go on to make 174 appearances in all competitions across three spells, scoring 15 goals with his final spell seeing him also return as first team coach, before transitioning into the manager’s role the following season.
"He took charge of 127 games for the club during his tenure, winning 62, emerging with a win rate of just under 50 per cent, and departs with our gratitude for his fantastic commitment, work rate and dedication during his whole time at Scunthorpe United, of which we undoubtedly know he gave his all.
"We wholeheartedly wish Andy the very best for the future, and look forward to watching him continue to grow and flourish in the game wherever it takes him next.
"The club will be making no further comment at this time, with further details will be provided in due course."
Scunthorpe's results this season included a 4-2 defeat to Carlisle United at Brunton Park on August 31.