The Finn's assistant coaches, Christer Mattiasson and Hugo Berggren, will also be forced to leave.
"Our clear ambition going forward is for Djurgården to be a club that fights for the title every year. But the trend, both in terms of our performances on the pitch and our points tally, simply does not match our goal and ambition to compete for titles," says Maximilian Hahn.
Djurgården will be led by Agon Mehmeti, Abel Lorincz and U19 coach Hannes Grönblad in the team's final two matches. The trio will take over temporarily while the club recruits a new head coach.
Djurgården are third in the table with two rounds remaining. Last season, in Honkavaara's first year in charge, the team finished fifth.
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