After the Goodison Park match, Chelsea announced on its website that "Ancelotti parted company with the club." The decision came 12 months after the Italian coach led Chelsea to the Premier League and FA Cup Double.
Chelsea was lackluster on Sunday, going down to a solo goal from Everton striker Jermaine Beckford 16 minutes from time.
The home team was also reduced to 10 men after Seamus Coleman was sent off for two bookable offences, the second a reckless lunge at Chelsea midfielder Jon Mikel Obi.
Ancelotti had spoken to the media immediately after the game, when he reiterated his belief that he would meet with Chelsea officials soon to decide his future.
"We haven't arranged any meeting but I think in the next week, now the season is finished, the club can address my job and they will take a decision," he had told reporters.
"I have to wait and see what happens." Chelsea finished second in the table, nine points behind champion Manchester United. Everton finished seventh, four points behind its Merseyside rival Liverpool.