Having succeeded Lee Baker over the summer, Payton leaves the Riverside after only five games of the season.
The end came in the aftermath of Monday’s 3-0 loss against Daisy Hill, the club’s third consecutive defeat and fourth of the campaign.
Having finished in the top seven last season, the Riversiders presently sit second-bottom of the Hallmark Security League First Division North table.
A club statement on Thursday said: “Garstang Football Club confirms that following a Board Meeting yesterday evening it parted company with First Team Manager Andy Payton. The Directors would like to thank Andy for his efforts and wish him well for the future.
“The club has immediately commenced the process of recruiting a successor and a further announcement will be made in due course.”