The sack of O'Driscoll was announced by club co-owner Fawaz Al-Hasawi via his Twitter account.
Forest are eighth in the Championship table, a point outside the play-off places.
Al-Hasawi said: 'And with the January transfer window approaching, we feel it’s the right time to make a change.
'We are looking to bring in an ambitious manager with Premier League experience.'
O'Driscoll joined Forest five months ago.
Co-owner Abduklaziz Al-Hasawi added: 'The timing of our decision may look a little odd after the win over Leeds but sometimes you need to make changes with the long term future in mind.
'Sometimes those changes need to be made from a position of strength rather than weakness and that is what we are trying to do.'
The club have employed and sacked three managers within the last 18 months.
After the sack of Billy Davies in June 2011, Steve McClaren, Steve Cotterill and O'Driscoll have all been fired.
After the win against Leeds, O'Driscoll said: 'I think we need consistency, sometimes we have consistent results from inconsistent performances and then we have inconsistent results from consistent performances.'
Dec. 27, 2012.
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