The former Milan midfielder was appointed in June following Palermo's relegation from the Italian top flight, but has only managed to secure seven points from his six games in charge.
With Palermo 12th in the table and speculation having been rife over the 35-year-old's future, Zamparini announced on Wednesday that his tenure had come to an end.
"It is with true and deep regret that we inform you that Gennaro Gattuso has been alleviated from the post of head coach of the first team," he said in a statement on the club's official website.
"Unfortunately, he and I together, we may have made a step too far for his first experience as a technician in a company and a public square as demanding as Palermo."
Palermo were beaten 2-1 by Bari on Tuesday in what proved to be Gatuso's last game in charge.
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