The club's Development Squad Director Daryl Phillips will act as interim manager until a new first team manager is appointed.
Phillips will take charge of next weekend's Irish Cup game with Newry City.
Ards chairman Warren Patton said: "This season Daryl has worked tirelessly to improve our NIFL Academy League teams. In recent weeks, he has also worked with our first team squad.
"He will be responsible for all first team duties until a new appointment is made."