Jones struggled to win consistently within the SEC, especially against rivals Florida, Georgia and Alabama.
"Unfortunately, we are not where we need to be competitively", Vols athletic director John Currie said in a statement Sunday afternoon.
As bad as the season has gone, UT still has a slim chance at bowl eligibility; it must win both its remaining games.
Tennessee's Interm Head Coach Is?
Hoke took over as the defensive line coach for the Volunteers this season after spending last season as the defensive coordinator at Oregon.
ESPN's Chris Low reported that Brady Joke, former Ball State, San Diego State and MI head coach, will be the interim coach for the Vols.
Hoke has been a head coach for 12 seasons, making stops at Ball State and San Diego State before arriving in Ann Arbor in 2011.
Hoke last acted as a head coach during 2014 in his final season with the Michigan Wolverines.
The Butch Jones era in Tennessee has apparently ended. The Vols are 4-6 this season, 0-6 in the conference and they close the season with two home games against LSU and Vanderbilt.
However, Jones did help produce nine National Football League draft picks during his Tennessee tenure and his players collected 18 All-SEC awards and 108 received SEC Academic Honor Roll honors.
"An exhaustive search is underway for a person of the highest integrity and character with the skills and vision to propel Tennessee to championships".
The Vols fell to Missouri on Saturday by a score of 50-17.
Tennessee becomes the third SEC coaching vacancy. The Vols also have never lost eight games in a season.