The Daily Mail says Zola has been called to Upton Park for talks with co-owners David Sullivan and David Gold, along with deputy chairman Karren Brady. Steve Clarke, Zola's No 2, will also be present.
He will be replaced and the two sides will attempt a 'mutual agreement' termination of his three-year contract, worth £1.9million a year.
Zola will claim he is entitled to £6m in compensation, but West Ham will offer closer to £1m. Legal representatives should be present as they attempt to thrash out what sources describe as a 'speedy and amicable agreement'.
Clarke, who is paid £1.2m a year - more than twice the salary of Sir Alex Ferguson's No 2 Mike Phelan - may be able to keep his job, but only if he accepts a salary cut.