The 42-year-old was reportedly informed of the news on Saturday morning and it comes four months after he last managed the team, prior to the football season in France being curtailed in March following the coronavirus pandemic outbreak.
The club apparently have been considering the decision for weeks and they are looking to move in a new direction, the report adds, following the arrival of sporting director Paul Mitchell.
Monaco ended the Ligue 1 campaign in ninth with Moreno winning five of his 12 games at the helm, drawing three and losing the other four.
It is claimed that the club’s owner Dimitri Rybolovlev and the sporting directive duo of Oleg Petrov and Mitchell made the decision unanimously to dispense with the 42-year-old.
Moreno had been Spain boss for a short period of time when Luis Enrique temporarily stepped down from the role due to the long-term illness and tragic passing of his young daughter last year.