Jackett's contract with the Championship side was terminated with immediate effect, despite given assurances that he would continue as manager.
"I would like to sincerely thank Kenny for everything he’s done for Wolves over the last three years," Wolves director Jeff Shi said.
"He’s shown true professionalism during his tenure and over the course of the transition to new ownership. I would like to wish him all the very best for the future".
Shortly after Jackett's departure, the club announced the appointment of Walter Zenga as manager.
Zenga has managed in Serie A with Catania, Palermo and Sampdoria and will commence a new challenge in England's second tier on Monday when he officially starts as manager.