The former Ireland scrum-half had already announced his intention to leave when his contract expires in the summer, but after seven consecutive defeats, the board have now decided to relieve him of his duties.
Bradley had an encouraging first year in the job, leading his side to the Heineken Cup semi-finals, but things haven't gone to plan this time around and they currently sit 10th in the RaboDirect Pro 12 table.
Stevie Scott and Duncan Hodge will now coach the team until the end of the season and SRU Chief Executive Mark Dodson believes he and the board have made the right decision for the club.
"We feel this move is necessary to give a fresh impetus to the squad going into the remainder of the season," he said. "Our search for a new coaching team for Edinburgh Rugby continues, with a view to getting the club back on a winning track."