By SABC Sport
22nd February 2024
His dismissal comes after his highly-criticised comments aimed at the match officials after Ulster's 19-17 defeat to the Ospreys – a result secured by a late drop goal.
Ireland U20s head coach Richie Murphy will take over the position on an interim basis.
McFarland is the longest-serving Ulster head coach in the professional era after joining the club in 2018.
During his time at the club, they reached the PRO14 Final, where they ultimately lost 27-5 to Leinster, but have regularly reached the playoffs of the URC and EPCR competitions during his tenure.
This season, however, Ulster have won six of their ten URC games and were knocked out of the Champions Cup after winning just one of their four pool-stage matches.
"We would like to thank Dan for his determination in driving forward the professional squad over the past six seasons, and I would like to wish him and his family the best for the future on behalf of all at Ulster Rugby," Ulster Rugby CEO Jonny Petrie said in a joint statement.
"We would like to thank Dan for his determination in driving forward the professional squad over the past six seasons, and I would like to wish him and his family the best for the future on behalf of all at Ulster Rugby."
McFarland's replacement, Murphy, will link up with the team following the conclusion of the U20s Six Nations, while Ulster also confirmed that Bryn Cunningham, Head of Rugby Operations and Recruitment, "will also assume greater management responsibilities within the performance function during this time."
Petrie added: "With Richie coming to Ulster in the coming weeks, ahead of the squad travelling to South Africa, our focus will be on consistently performing to the best of our abilities at this crucial time of the year."