The 55-year-old, who was recalled to the post after his successor Alberto Malesani was dismissed at the end of February, survived just two games in his latest spell with the club.
Gasperini was re-appointed as the Serie A bottom club's boss at the end of last month, replacing Alberto Malesani, who himself had only been at the helm for 19 days; however, following a 0-0 draw with Torino and a 2-1 defeat to Siena on Sunday, club president Maurizio Zamparini has decided once more to part ways with the 55-year-old.
A statement on the club's official website read: "After a meeting between the board of directors, Giorgio Perinetti and Gian Piero Gasperini, Palermo announces that it has reached an agreement with the coach for the consentual termination of his contract."
Gasperini's previous spell at the club only ended on Feb. 4 this year, before Malesani was placed in charge for less than three weeks.
Early reports in Italy suggest Giuseppe Sannino, who was sacked by Zamparini in September last year, could be recalled to replace Gasperini at the helm. He would become the 27th managerial appointment at the club since 2002.