The former Charlton and Israel under-21 boss had replaced Sir Alex Ferguson’s former assistant Rene Meulensteen in February but failed to improve the club’s fortunes.
“I came to Maccabi Haifa and took on the major challenge of transforming the past six years into something much better,” said Luzon.
“Regretfully, it didn’t work out. I’ve only got good things to say about the club, the fans and everybody who worked with me.”
Luzon is the eighth manager to be sacked since Maccabi last won the title in 2011.
Newly appointed deputy coach Rob Maas will take charge of the team on an interim basis.