Zubeldia, the first coach to lose his job this season after only four rounds of matches, leaves the team bottom of the standings with one point in the ‘Inicial’ championship.
"Owing to the bad start to the season, the club's authorities have taken the decision not to continue with the footballing cycle that had begun in May 2012," Racing said in a statement.
Racing looked set for a good season after the 32-year-old Zubeldia ended last season well, promoting young talents and winning their last three matches and reaching the final of the Copa Argentina knockout competition.
But after one draw and three successive defeats in the league this season, the club board have lost faith in him.
Zubeldia was a talented youth international midfielder who had to retire at 23 with osteochondritis in a knee. He went into coaching, becoming the youngest to take charge of an Argentine first division team at 27 in 2008 with Lanus.
He has also coached Barcelona of Ecuador.