Markuson was not available for comment Sunday, but sources close to the program confirmed the change.
Sources have confirmed Bart Miller, in his second season as UW's offensive quality control coordinator, would be promoted to fill Markuson's position.
Wisconsin has failed to live up to its reputation as a powerful running team so far in 2012 after producing more than 3,000 yards in each of the last two seasons.
Under Markuson, the Badgers have gained just 267 yards on 70 carries (2.9 yards per carry) while going 1-1 in 2012.
Coach Bret Bielema was not available for comment on Sunday but mentioned the offensive line's inability to control the line of scrimmage Saturday in a 10-7 upset loss at Oregon State.
"There just wasn't any room in there," he said. "We weren't getting any push at the line of scrimmage."Markuson, who spent 14 seasons coaching at Ole Miss and Arkansas in the Southeastern Conference, was hired to replace Bob Bostad after the 2011 season.
Bielema noted several times the responsibility for solving the woes of the line and the offense, generating 16.5 points per game, was his.
"We've got to be able to execute the plan that we have in place," he said. "Obviously what we do at Wisconsin, there is a certain formula that we recruit to that we believe to be very, very important for us to have success.
"And when we can't (make) that happen, we're going to find ourselves in trouble."