City owner Thaksin Shinawatra told Eriksson he was "not the right man for the job" at a meeting on Saturday, a source close to the Swede said.
Eriksson informed the players at training on Monday that he would be dismissed, provoking an angry response.
Shinawatra has been unhappy with City's results since the turn of the year.
This fucker has just declared war on our club
We're on a mission from God