Molyneux Park Trust chairman Wayne Soper said it was a "difficult decision" and the trust had "reluctantly" decided to let McAlevey go.
"We considered the whole situation and decided that's what was needed," Soper said.
Molyneux Park has hosted elite cricket for more than 30 years but lost its NZC warrant of fitness following poor reports about the pitch last season.
However, the ground was pencilled in for two one-day matches in the hope the pitch would prove its fitness during a three-day trial match at the ground over Labour Weekend.
The pitch got satisfactory reports but did not meet the standard required.
Soper said McAlevey's termination was effective immediately and the trust was in the process of sounding out the cricket fraternity for a potential replacement.
"We've got some temporary arrangements at the moment but will be looking for a replacement as soon as possible."
Soper said the trust was now focusing on helping Molyneux Park regain top-level cricket.
McAlevey, who replaced long-serving Peter Domigan in 2005, declined to comment when contacted yesterday, saying his side of the story would be heard in due course.
Otago Cricket Association chief executive Ross Dykes said his organisation backed the trust's decision.
"Otago cricket is pleased that the Molyneux Park Trust is determined to get the ground up to scratch," Dykes said.
"Whatever endeavours they take to do that are strongly supported by Otago cricket, because we do see the ground as an important part of our first-class game going forward."
Otago's December 8 one-day match against Wellington and the December 28 game against Central Districts, which were scheduled for Molyneux Park, will now be played at the Queenstown Events Centre and the University Oval respectively.
