Former Argentina international Schelotto was drafted in to replace sacked Davide Ballardini -- the club's second coach this season -- in the New Year.

But Schelotto's existing coaching qualifications did not pass muster with European football's ruling body UEFA, prompting his resignation and that of his backroom staff, according to a statement by Palermo.

"It is with profound regret that Palermo have accepted the decision of Guillermo Barros Schelotto and his backroom staff to leave the club due to a lack of the required UEFA coaching credentials," the club said.

"Barros Schelotto has bid farewell to the squad, which is now under the provisional guidance of Giovanni Tedesco.

"The club is working on finding a solution to this urgent problem."

Palermo published a statement by UEFA which confirmed Schelotto's predicament.

"After a thorough evaluation of the case of Mr. Guillermo Schelotto, the UEFA (official) Jira Panel confirmed that the latter's diploma is not in line with UEFA's minimum criteria.

"Moreover, according to the evidence provided, Mr. Schelotto does not meet the criteria of a minimum of five years' experience as the head coach of a professional top division club or national A team of a FIFA member association."

Schelotto's departure could prompt trigger-happy Palermo owner and president Maurizio Zamparini, who has sacked 30 coaches since taking over the reins in 2002, to make a hasty call to Giuseppe Iachini. 

Iachini became Zamparini's 29th sacking earlier this season, a decision that angered Palermo's players, many of whom protested the dismissal.

Palermo sit in 15th place in Serie A, 30 points behind leaders Napoli and only seven points from the relegation zone.