Zola, who enjoyed a seven-year career at Stamford Bridge, believes the doubt cast over his compatriot's Chelsea future is having a negative effect on the club.
"It's very difficult to say. There have been a lot of issues. For me, it's sad because he's a manager who has done well," said the Italian.
"It's not healthy. The Premier League is such a competitive league and everything on the inside at a club needs to be spot on.
"It's a pity, because I repeat, Antonio is a very good manager," Zola concluded.
Despite his recent FA Cup triumph, Conte's title-defending season wasn't the fairytale story Blues fans were hoping for. With a disappointing fifth-place league finish, Conte is expected to be heading for the exit door.