Lyon reached the Champions League semifinals for the first time in 2010 but hasn’t won a trophy since Puel took over from Alain Perrin, who led Lyon to the league and French Cup double in 2007-08.
Lyon said Puel “is no longer the club’s coach from today.”
Lyon officials and Puel met in Paris under the supervision of the French league juridical commission last week but failed to settle their differences during a mediation session.
Puel, who had a year left on his contract, reportedly received a €4 million severance fee. He is likely to be replaced by former Arsenal and Lyon player Remi Garde.
Garde currently heads Lyon’s academy.
