The sweeping move was reported by the official Wafa news agency, which gave no details on the reason for the decree.
The governors of North Gaza, Gaza city, Khan Younis and Rafah have all been put on retirement, as well as governors in Jenin, Qalqilya, Bethlehem, Nablus, Hebron, Tul Karm, Tubas and Jericho in the occupied West Bank.
A presidential committee has now been formed to select their replacements, it added.
Such a move is unprecedented in the occupied Palestinian Territories.
It follows failed Palestinian unity talks held in Cairo late last month, when President Abbas sat with leaders of rival faction Hamas, which has governed the blockaded Gaza Strip for almost two decades.
The talks failed to result in progress, dashing hopes of a united front against growing Israeli aggression.
The long-time president has recently come under fire in the city of Jenin, where residents of its refugee camp blasted a lack of support following a deadly raid which killed 12 people last month.
He made a rare visit to the camp following the raid but was criticised for government inaction in the light of almost-daily Israeli raids.
The Palestinian Authority has become increasingly unpopular in recent years amid allegations of corruption, negligence and co-operation with Israel.
Only 27 per cent of people is satisfied with their performance, a poll conducted last year showed.