Minnesota announced Thibodeau's termination following a 108-86 win against the Los Angeles Lakers on Sunday at the Target Center in Minneapolis. Thibodeau, 60, coached the Timberwolves for five seasons. He led the team to a 19-21 mark this season.
The Timberwolves were 97-107 during his 204 game tenure.
"These decisions are never easy to make, but we felt them necessary to move our organization forward."
The team also announced the dismissal of assistant coach Andy Greer. Scott Layden will remain the team's general manager and will run the day-to-day operations of the basketball department. Assistant coach Ryan Saunders will serve as the Timberwolves' interim coach for the remainder of the season.
The Timberwolves travel to face the Oklahoma City Thunder at 8 p.m. on Tuesday at Chesapeake Energy Arena in Oklahoma City.