Sky Sports News understands that the meeting in central London between Everton's majority shareholder Farhad Moshiri and Sam Allarydce last around an hour.
Discussions were described as ‘amicable’ with manager and majority shareholder in agreement that both parties had reached the end of the time working together.
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SSN also understands that the remaining 12 months of Allardyce’s contract, plus bonuses for keeping Everton in the Premier League will see him walk away with around £6m.
Backroom staff including Sammy Lee, Craig Shakespeare and Martyn Margetson have also left the club.
Sacking Sam Allardyce and appointing Marco Silva could end up costing Everton an eye-watering £16m.
Everton are yet to resolve their dispute with Watford over the alleged tapping up of Silva last year and Sky Sports News believes that settlement alone could cost Everton as much as £8m.
Added to that, paying up the 12 months left on Allardyce’s contract – plus a bonus for keeping Everton in the Premier League – will cost the club around £6m.
Finally, the contract settlements for Allardyce’s backroom staff including Sammy Lee, Craig Shakespeare and Martyn Margetson is likely to cost a further £2m.