La Albiceleste are fifth in the 10-team South American qualifying group, with only the top four assured of qualifying for the tournament in Russia.
Finishing fifth would mean a play-off against a team from Oceania.
Bauza, 59, was appointed in August and guided his side to three wins, two draws and three defeats.
“We’ve told Bauza he’s ceased to be the national team coach,” said Argentina Football Association president Claudio Tapia.
“The national team is playing badly and everyone knows it.”
Bauza’s final match was a 2-0 defeat in Bolivia, which came hours after captain Lionel Messi was given a four-match ban for verbally abusing an official.
Argentina have four games left in qualifying, with their next match against third-placed Uruguay on 31 August.
They last failed to qualify for a World Cup in 1970.