The former Genoa coach, who lasted five games as Inter Milan boss at the start of last season, has paid the price for the well-supported club's poor run of results despite having little influence over Sunday's loss.
"Palermo announce that we have relieved Gian Piero Gasperini of his first-team duties. The name of the new coach will be announced tomorrow," Palermo, more used to battling for the European places in Serie A, said in a statement on Monday.
Italian media reports have said Alberto Malesani, who guided Parma to a 1999 UEFA Cup triumph among his many coaching jobs, is lined up to become Palermo's third coach of the season after Gasperini replaced Giuseppe Sannino in September.
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