Stars parted ways with Lavagne and his assistant Phillip Ciccarini in the wake of last night's 1-0 loss to Golden Arrows at Goble Park.
Development coach Themba Sithole has been appointed caretaker boss ahead of Saturday's trip to SuperSport United.
“Unfortunately we have had a relation break down with the coach and his contract has been terminated with immediate effect,” Mokoena told the club's website.
“He has lost it in the dressing room, the morale and mood was terribly low, hence results were not coming. We have taken a tough decision on his termination of his contract.
“One might say it’s still early in the season to fire a coach but I strongly believe that we were not going to achieve anything with the coach, hence we had to take a drastic decision.
“Development coach Themba Sithole will be in charge of our next two matches against SuperSport United and Kaizer Chiefs respectively, until we find a suitable candidate for the job.”