The Sun says Zola was sacked with no pay-off after a brief meeting with Hammers vice-chair Karren Brady at Upton Park. He was officially dismissed for a serious breach of contract.
Zola is now set to launch a legal claim for £1.9million compensation - a year's salary.
In a statement issued through the League Managers' Association, he said: "I'm extremely disappointed to be leaving West Ham.
"Over recent weeks, I've been the subject of various adverse comments from within the club.
"The termination process of my contract is now in the hands of the LMA."