Montpellier axe coach Gasset as Ligue 1 relegation looms
The club said in a statement the decision to "terminate the mission" was agreed by "mutual agreement" with veteran Gasset.
With six games left to play, Montpellier are eight points behind Saint-Etienne and eleven adrift of Reims, second and third from bottom respectively.
Gasset conceded before Sunday's 2-0 defeat to Le Havre he was "not certain" to finish the season.
"We have to stop hoping," the 71-year-old said.
"Curtains. We're weak, we don't score, we concede ridiculous goals after two minutes of play. It means we're not good and we don't belong in Ligue 1, full stop," the Frenchman added.
Gasset took over from sacked Michel Der Zakarian on October 22, returning to the club where he spent most of his playing days and began his managerial career.
He had announced his retirement after coaching Marseille on an interim basis last season, having previously coached the Ivory Coast for two years.