He had been in charge of the side for less than two seasons, but won just 67 of his 154 games with the team, leading them to a last-place finish in the Pacific Division this year.
In a statement, general manager Mitch Kupchak said: "Given the circumstances, I don't know that anybody could have done a better job than Mike did the past two seasons.
"On behalf of the Lakers, we thank Mike for the work ethic, professionalism and positive attitude that he brought to the team every day. We wish him the best of luck."
D'Antoni took over from Mike Brown, who was sacked following a 1-4 start to the 2012-13 season.