French soccer powerhouse Lyon confirmed on Monday that Claude Puel would no longer coach the Ligue 1 outfit.
The 49-year-old, who won the French title in his first coaching post with Monaco in 2000, has failed to deliver a trophy in his three years at the club since arriving from Lille.
Puel has a year left on his contract and could earn up to four million euros (5.7 million dollars) in compensation.
The club and Puel failed to agree terms after a conciliation hearing organised by the French Professional League (LFP) last Wednesday.
Lyon, French champions from 2002 to 2008, finished third this season, earning a place in the play-off round for next season's Champions League, but the relationship between fans and the coach has been strained in recent months.
Remi Garde, the current director of Lyon's youth training centre, has been widely tipped to replace Puel.
Garde, 45 and capped six times by France, played for Lyon for nine years before moving on to Strasbourg (1993-1996) and then English Premier League powerhouses Arsenal (1996-1999).