Japan Football Association president, Kozo Tashima stated the reason for Halilhodzic sack to include lack of communication and weakened trust from players.
With just two months until the World Cup kicks off in Russian Federation, one of the 32 managers preparing for the finals has been sacked from his post. Takeshi Okada piloted the squad that appeared in the 1998 France World Cup and the 2010 South Africa World Cup.
Nishino was the head coach of the Japanese Olympic team at the 1996 Atlanta Games in which it pulled off a stunning upset of Brazil.
"We did not do this just because of the results, we listened to the player's voices".
The 65-year old was under pressure after a 1-1 draw against Mali and a 2-1 defeat against Ukraine in March.
Japan has never advanced beyond the second round, and will be making its sixth straight appearance in the upcoming World Cup.
In the recent global break, however, a 1-1 draw with Mali and a 2-1 loss to Ukraine were disappointing results.
Asia's dominant teams have tended to struggle at the World Cup when the top teams from Europe and Latin America are peaking.
Japan are scheduled to play their first group stage game in the World Cup against Colombia on June 19, followed by Senegal five days later and Poland on the 28th.
South Korea's run to the semifinals in 2002 as co-host remains the best run by an Asian team at the World Cup.
Halilhodzic guided Algeria to the last 16 at the 2014 World Cup, where they lost to Germany in extra time.
Franco-Bosnian Halilhodzic, who recovered from being wounded in 1992 during the Bosnian war, insisted he was no "dictator" - but acknowledged his frank approach was capable of "wounding" some people in Japan.
After being hired in March 2015, he steered the national team to qualification for the finals in Russian Federation in June but has since been panned for the team's showing in a series of recent global friendlies. Japan, South Korea and Iran each had one draw and two losses and Australia lost all three matches in a group containing Netherlands, Chile and Spain.