"We've parted ways with Zico. We know who the new coach is. We will sign an agreement in Istanbul next week," Aziz Yildirim was quoted as saying by Turkish news broadcaster NTV.
Zico led the Istanbul club to the Champions League quarter-finals this season but lost out to city rivals Galatasaray in the domestic title race.
In recent weeks Turkish media have reported disagreements over a new contract for Zico, who had already signalled that he planned to leave.
The former Brazilian international came to Fenerbahce in July 2006 after coaching the Japanese national team.
Güncelleme Tarihi: 10 Haziran 2008, 17:55