The Italian coach canceled his contract on Sunday and traveled to Rome early Monday.
Esteghlal has moved top of Iran Professional League after about four years under the discipline-based approach of the Italian coach but he left his post after the Iranian club failed to respect contractual obligations.
The local media have reported that around 100 Esteghlal supporters have gathered outside the Iran’s Ministry of Sport and Youth, which owns the club, to protest the incident.
Fathi was appointed as Esteghlal GM in November 2018.