In explaining the Argentine's dismissal, Nazer admitted the key reason was Gallardo's demand that Real Madrid legend Benzema be dumped.
He said, "Last season, Gallardo made important mistakes in requesting the removal of Karim Benzema.
"This is completely unacceptable for the Al Ittihad project. I have asked the legal department to study this issue and the necessary measures will be taken.
"He cannot go to Al Hilal, coach Gallardo went against many of our indications and had unacceptable demands like the departure of player Karim Benzema, which is an essential part of our sports project. Benzema, as I have already said, will not leave Al Ittihad and will continue with us.
"We have already started the search for a new coach for the next season after deciding to terminate the contract. We have two or three options, but I cannot disclose details due to associated contracts. Currently, we are reviewing the files of three foreign coaches and we will choose one of them to sign him in the next period."
Gallardo will leave Al-Ittihad with a stunning payout of €30m.