The former Celtic and FC Sion midfielder was appointed in June following Palermo's relegation from the Italian top flight, but has only managed to secure seven points from his six games in charge.
With Palermo 12th in the table,the speculation had been rife over the 35-year-old's future,and club president Zamparini announced today that the italian "General's" tenure had come to an end.
"It is with true and deep regret that we inform you that Gennaro Gattuso has been alleviated from the post of head coach of the first team," Zamparini said in a statement on the club's official website.
"Unfortunately, he and I together,we may have made a step too far for his first experience as a technician in a company and a public square as demanding as Palermo."
Palermo were beaten 2-1 by Bari yesterday, a game which proved to be Gattuso's last game in charge. This would be the second time Gattusso would be relieved of his managerial post, after also having a short spell with Swiss club FC Sion...You get hired to be fired,the Story of a Football Manager.
Guiseppe Iachinni has been appointed to take charge of the club, Iachinni is a reputed coach in the Serie B division taking Cheivo Verona,Brescia and Sampdoria back to the Italian SerieA top flight.