Di Matteo, a former Italy international midfielder who played for Lazio and Chelsea, had been in the job since June 2009, having previously worked at League One (third tier) side Milton Keynes Dons.
"This has been a tough decision," said West Brom chairman Jeremy Peace.
"But we, as a board, believe it is the right one to give the club the best possible chance of remaining in the Premier League."
ORIGINAL SOURCE
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