The Sicilian club made the announcement on its website Sunday, a day after a 0-0 draw at home with Genoa.
Malesani guided the club to three draws during his short stint in charge, leaving Palermo one point behind Siena and Pescara and on a 12-match winless run.
It's the third coaching change for Palermo this season.
Giuseppe Sannino was replaced by Gasperini in September, then Malesani was hired at the beginning of this month.
Malesani was fired twice by Genoa last season.