Felton saved his job last season after the Bulldogs earned an NCAA Tournament berth with a SEC Tournament championship.
They had finished 13-16 overall during the regular season and were sixth in the SEC West with a 4-12 record.
Felton's firing comes as the Bulldogs (9-11, 0-5) are mired in a seven-game losing streak.
"I'm disappointed that things have not worked out better," Evans said before a news conference. "I do think it is in the best interest of our men's basketball program that we move in a new direction."
"I accepted (Evans') recommendation with regret, but I believe this decision to be in the best, long-term interest of the men's basketball team," said UGA President Michael F. Adams.
Felton compiled an 84-91 overall record in five-plus seasons.
Associate coach Pete Herrmann will be Georgia's interim head coach the rest of this season.