Tooting & Mitcham chairman Bill Hill says Roberto Forzoni was asked to step down as manager because they could not wait any longer for results to improve.
Hill says he, executive director Chris Woolley and owner Steve Adkins met Forzoni on Thursday to discuss their disappointment in recent results and explain that the situation needed to improve.
But after losing 5-2 to the Ryman League Division One South bottom club Hythe Town on Saturday, Hill says the trio made a unanimous decision to offer Forzoni the opportunity to resign.
Forzoni released a statement on the club's website on Monday stating he "categorically did not resign", leaving Hill to concede that, as a consequence, Forzoni would go down as being sacked.
Hill said: "We asked Roberto to a meeting on Thursday night because we were not pleased with the results. He defended his position and said that it is early days.
"We told him we have one of the biggest budgets in the league, we had a bad season last season and we cannot afford for this to keep on.
"We lost 5-2 to the bottom team and it was bad. We had bookings galore, the manager got booked and at the end of the game I consulted Chris Woolley and we felt we should consult with Steve Adkins as the main board member.
"We said that after our meeting on Thursday and the game we'd just seen, something had to change."
He added: "I felt it would be better for him, as somone with a career in sports psychology, where it would be better for him to resign rather than the opposite.
"I was under the impression that he took that offer to resign, but it now seems that he didn't do that. I am not going to make an issue of it, it was not a nice thing to have to do."
Forzoni fired a parting shot at the club saying there were "massive problems" with players not being paid and staff being sacked, as well as claiming no-one would discuss the issues with him face to face.
Hill said: "As far as I am aware, one player was not paid because there was a problem with his bank account. And as for not talking to him face to face, we spoke face to face on Thursday, and face to face on Saturday."
He added: "Roberto said it was still early, but how long do you hang on? We'd conceded 12 goals in three games, we weren't playing well and the comments from fans were bad.
"If we'd lost 5-2 to a side at the top of the table, you might be able to forgive that, but to lose to Hythe at the bottom, it was too much."
Jamie Martin has taken over as caretaker manager and he has a chance of making the appointment full time shoud he improve results.
Hill said: "There is no reason why Jamie cannot do the job, but he needs to prove he is up to it first of all."