One resident told BBC Arabic on Friday: "Hundreds of thousands are chanting 'Leave, leave, the people want the fall of the regime.' All of Hama is celebrating. There are people chanting from their windows and from the fronts of their homes. All of Hama is on the streets."
State television, in a newsflash on Saturday, said: "The Syrian president signed a decree today relieving Dr Ahmad Khaled Abdel Aziz of his post as governor of Hama."
Correspondents say there were reports the army had eased its presence in the city earlier in the week.
Hama was the scene of a Muslim Brotherhood uprising against Mr Assad's father, Hafez, in 1982, which the army crushed, killing at least 10,000 people.
Mr Assad had sacked the governor of the southern city of Deraa in March after days of protests there.
Protests were also reported on Friday in the capital, Damascus, the second city of Aleppo, Latakia and the flashpoint city of Homs.

Some activists put the number of protesters nationwide at three million.
The figures cannot be independently verified as the Syrian authorities have banned most foreign media from the country.
Speaking on Friday, US Secretary of State Hillary Clinton warned that time was running out for Syria's government to usher in reforms.
The renewed protests on Friday came despite the holding of a landmark dissident conference in Damascus last week.
It was the first time in almost four decades that dissidents had met in public without fear of arrest.
The BBC's Owen Bennett-Jones in Beirut says that although the Syrian government has been allowing some dissidents to air their views, whatever the administration does, the protests keep on happening.
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