The Rosanero have announced their decision to dismiss their head coach following the home defeat against Atalanta on Sunday, which has left them four points from safety in Serie A
The 55-year-old took over at Stadio Renzo Barbera on September 16, 2012, following in the footsteps of former trainer Giuseppe Sannino, but Gasperini was not able to steer Palermo away from the relegation zone.
A statement on the official website said: "Palermo announce that we have relieved Gian Piero Gasperini of his first-team duties. The name of the new coach will be announced tomorrow."
Gasperini was not even in the dugout for Sunday's clash after he received a touchline ban for arguing with officials, previously.
Although a possible successor has not been named yet, it is expected that former Fiorentina boss Alberto Malesani is among the favourites for the role.
Palermo sit 20th in Serie A, having not won a game since beating Catania 3-1 on November 24, and are four points adrift of safety.