The 62-year-old had been in charge since March but was unable to stop the Latics being relegated from the Sky Bet Championship.
Backroom staff Mick Rathbone, John Doolan and Jimmy Barrow also left the DW Stadium on Monday.Portsmouth boss Paul Cook has been heavily linked with the Wigan hotseat.
— Wigan Athletic (@LaticsOfficial) May 29, 2017
Chairman David Sharpe told the club’s official site: “Graham has spent a large part of his professional career with Wigan Athletic over three spells, and has been with us during the highs and lows of the past eight years.
“On behalf of everyone at the club and all our supporters, I want to thank him for all his hard work during his time with Wigan Athletic.
“Graham has been a great servant to the club as a player, a manager and a coach and on behalf of everyone at Wigan Athletic, we wish him all the very best for the future.”
Barrow had spent 15 years at the Latics in three different spells, having previously been a coach under Roberto Martinez in 2009 before being promoted to assistant manager and also serving as caretaker boss in 2013 and 2016.
Previously, he was manager between 1994 and 1995, helping the club rise away from the foot of the Football League and also made 212 appearances for the club between 1981 and 1986, scoring 44 goals.
Barrow won two and lost five of his nine games in charge this season after Warren Joyce left in March as Wigan finished second bottom, four years after dropping out of the Premier League.