A statement from the club read: "Palermo announces it has dismissed Walter Zenga as coach of the first team."The club wishes to thank Zenga for the work done and wishes him the best of luck in the future."
Palermo are 12th in Serie A with 17 points from 13 games.
Zenga replaced Davide Ballardini in the summer and was under contract until June 2012.
He had been given a vote of confidence ahead of yesterday's derby game only for club President Maurizio Zamparini to change his mind.
Palermo have not announced who will replace Zenga but former Lazio coach Delio Rossi is considered the leading candidate.
Zenga admits he was surprised.
"I honestly didn't expect this," said Zenga. "I am extremely disappointed but I don't want to talk in the heat of the moment.
"I spoke to Palermo president Maurizio Zamparini this morning but I will speak to the press on Wednesday."
Source: Sporting Life
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