Eriksson told his players on Monday morning that his services would no longer be required after his first season with the club, according to BBC, which added that the players were angered by the decision.
The former England boss met with the club’s Thai owner Thaksin Shinawatra on Monday.
Eriksson’s position was undermined by a demoralizing 3-2 loss to relegation strugglers Fulham at the weekend, squandering a 2-0 lead, but the Swede’s agent Athole Still insisted: “There is no way he will quit after the successful job he has done.”
Eriksson had also received firm backing from Michael Ball, City’s captain on Saturday in the absence of Richard Dunne, who said the squad were to a man supportive of the former England manager.
“Every player is 100 percent behind him (Eriksson). We like his methods, the way he trains, the way he goes about his tactics,” Ball said.
“If the club wants to go forward we have got to keep the coaching staff and obviously add a few more players.”