Leeds owner Cellino has played down reports that Benito Carbone will take over as the club’s next manager.
McDermott was relieved of his duties late on Friday night, after reports begin to circulate claiming an emergency meeting had been called for Monday.
The former Reading coach’s future had been subjected to fierce speculation for months, and he was controversially and bizarrely ‘sacked’ on Friday January 31, before resuming his position just days later.
However McDermott has now officially been removed, but the Italian owner has dismissed reports suggesting that technical consultant Carbone will be the next boss at Elland Road.
Speaking to freelance journalist Simon Austin, who enjoys close links with the club, Cellino said: "I have always said that Carbone will be in charge of the Under-21s next season and that doesn't change now.
"We did not want to go on pushing, pushing each other, and we found a gentleman's way to part. Brian leaves the club on good terms, he is a gentleman."
Cellino is expected to make around 85 redundancies at the Championship side as he begins cost-cutting measures to try and keep the side competitive in England’s second tier.
It is believed that the PFA have been alerted to the situation and are ready to act if the players are not paid their wages on Monday morning.
He said: "It's very very strange at the moment, the players have been asked to come back in next week from their holidays, which I think we were all given time off until July 3, and it's unheard of really.
"The shame is, there’s going to be lots of redundancies and lots of player changes around and it’s such a huge club, they need to get that sorted fast."
However, one player who he is unwilling to lose is talisman Ross McCormack having claimed recently that the club were under no obligation to sell last season’s top scorer.
"I came here with a big dream, to find if I am good at running a club,” The Express quoted him as saying.
"I spent the last 23 years [at Cagliari] buying beautiful players for £1 million. I saw them grow and then they have to leave. Every time you have to start again because the club doesn't grow like the players.
"If I can do the same thing here at Leeds, the club can grow like the player, so we don't have to sell - we can keep them."