In a statement, Pisa said they had "terminated with mutual consent" Inzaghi's contract, which had another two years to run.

The 51-year-old former Italy, AC Milan and Juventus striker is set to stay in the second tier with Palermo.

Italian media report Palermo have paid Pisa nearly a million euros to take Inzaghi as the Sicilians, owned by the City Football Group which also owns Manchester City, attempt their own return to Serie A.

Pisa finished second in Serie B under Inzaghi and gained promotion to the top-flight for the first time in 34 years.

The Tuscan club, whose Arena Garibaldi stadium is in the shadow of the famous leaning tower of Pisa, moved up to Serie A with Sassuolo and Cremonese.

Alberto Gilardino, who like Inzaghi won the 2006 World Cup as a player with Italy, is among the candidates to take charge of Pisa, as is Marco Giampaolo following his sacking from Lecce this week.