Conte took preseason training this week at Chelsea's practice base in Cobham with players who hadn't featured at the Fifa World Cup, but reports emerged in the Italian media on Thursday (Friday NZT) saying Conte had been fired.
Conte led Chelsea to the Premier League title in his first season in England in 2016-17 and followed up that achievement with the FA Cup triumph this year, but his relationship with the board became damaged beyond fix, highlighted by his repeated public and private complaints about transfer policy.
But he was warned not to follow the title success with "a Mourinho season" in reference to their slump of 2015-16 when they finished 10th, a year after winning the league under the Portuguese.
Sarri's arrival could also pave the way for Jorginho to complete his move to Chelsea soon.
It is expected that Chelsea will formally unveil Sarri as their new manager in the very near future.
Chelsea have officially announced the departure of Antonio Conte from the Premier League club.
Conte leaves with the best win percentage 65.1 per cent of any of Chelsea's managers in the Premier League era.
The former Empoli boss is not known as a big spender which might fit with the slightly more modern Chelsea era of tighter spending.
There was concern at the club that if Conte stayed then star players could try to leave, including Real Madrid target Eden Hazard.
"Thank You Boss", Terry posted on Instagram alongside a photo of the two of them holding the Premier League trophy.
The Italian coach fell out with the Chelsea board last season and was adamant that he would receive his full £9m compensation fee.
Antonio Conte's departure from Chelsea is the latest episode in the "boom and bust" story of managerial life at Stamford Bridge.