For now, Cory Hall, the team's cornerbacks coach, will assume the role of interim head coach. "Success comes when all parties involved are moving in the same direction".
Andersen and the school have also agreed to release each other from all future contract obligations. He became the first Power 5 coach to lose his job in the 2017 season.
"I thank Gary for his many contributions to our student-athletes, OSU Athletics and Oregon State University", athletic director Scott Barnes said in a release.
And some critics have argued that Andersen fumbled a move at the quarterback position this summer when he named Jake Luton as the Beavers' starter over ex-Dinuba High star Marcus McMaryion, who had started the final six games of 2016 highlighted by wins over Arizona and Oregon.
The Beavers now have a 1-5 record for the season with no wins in Pac-12 Conference play.
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The Beavers host the University of Colorado at 2 p.m. Saturday.
The Beavers have had a nightmarish start to the season. "His decision is made for the right reasons and values, and it speaks volumes about the kind of honorable person that Gary Andersen is".
Marcus McMaryion scrambles during a game last season with Oregon State.
He has made a quick run up the college leader since leaving Clovis North to join Andersen's Wisconsin staff as a graduate assistant in 2014. He would have been paid more than $12 million under the terms of a contract extension he signed in December.
Andersen led Utah State to an 11-win season in 2012 and a 26-24 overall record in four years. He's now 27-29 at Arkansas, and Bielema's only wins this season are against Florida A&M and New Mexico State. But coach Tommy Prothro left for UCLA after the Pasadena trip, and the Beavers didn't make any appearances in the AP poll from 1969-99, a three-decade period of struggles that included a streak of 28 straight seasons with losing records. Andersen didn't come close to continuing that.