"Given the behaviour of Michel, notably during those last three weeks, Olympique de Marseille have suspended Michel with immediate effect and summoned him to a pre-redundancy interview," OM said in a statement.
The club added that assistant coach Franck Passi would take charge until the end of the season.
Marseille are 15th in the Ligue 1 standings, six points above the relegation zone.
French sports daily L'Equipe reported that Michel, who took over from Marcelo Bielsa in August last year, did not direct Monday's training session.
OM, who are on a club record 14-game winless streak at the Stade Velodrome in Ligue 1, travel to Ligue 2 side Sochaux for a French Cup semi-final on Wednesday.
(Reporting by Julien Pretot; Editing by Patrick Johnston)
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