The Burgundy-based club has suffered inconsistent form in Ligue 2 this term, winning only five of the 16 games contested so far and the 1-1 draw away to Cheteauroux, on Friday, turned out to be the last game for the 45 year-old former Lens and St Ettiene tactician.
According to France3 television, the news had been confirmed through a press communique on Sunday (December 2, 2012).
For the moment, no substitute name was given by the club or the President Gérard Bourgoin. Nevertheless, rumor gave to understand that Bernard Casoni was the favorite to take over.
Auxerre who were relegated to Ligue 2 after finishing at the bottom of the French top flight league last season, currently lies 16th on the Ligue 2 standings with 18 points from 16 games, 14 points adrift table toppers Monaco.
Wallemme joined Auxerre earlier this season, in a caretaker role, a post he juggled with a full time position as Congo - Brazzavile tactician.
His departure could spell doom for the Kenyan striker, who has enjoyed a big share of playing time since Wallemme took over the coaching mantle.