Dlamini took over the coaching reigns at Mbombela the start of the current campaign after leaving Platinum Stars at the end of last season.
The Mpumalanga based side currently sits fourth on the standings after 22 matches.
According to a source close to Tingwenyama, former Stars midfielder Edward Williams has taken over as interim coach.
“The coach [Milton Dlamini] has been relieved of his duties. Edward Williams is now caretaker coach,” said the source.
Meanwhile former Mpumalanga Black Aces and Orlando Pirates midfielder, Dennis Masina, has dusted off his boots and returned to action. He has been registered with the PSL and will play for Mbombela.
Masina retired a few years ago, while he was still playing for Aces.