"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.
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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)
