Gary Kirk, Levein's former assistant, will take charge of the Third Division table-toppers against East Stirlingshire on Saturday.
Cormack, who starred for Hibernian, Liverpool and Nottingham Forest, had not even been at Central Park long enough to lead the team into action.
Cormack had the shock news broken to him on Thursday afternoon when club chairman Gordon McDougall arranged to meet him at a roadside hamburger stall.
An angry Cormack said that he was offered a sum of money to quietly walk away from the club but refused to be party to such a deal.
He also claimed that it was player power that got him removed from his post so suddenly.
"A certain group of players put pressure on the chairman," said Cormack.
BBC Scotland understands that the club's board felt that he had already attempted to make too many changes to a team leading the Third Division.
He had taken over after Craig Levein succeeded Jim Jefferies at Hearts.
The dispute is likely to end up at an industrial tribunal.
Gary Kirk, Levein's former assistant, will take charge of the Third Division table-toppers against East Stirlingshire on Saturday.
Kirk had turned down the offer of being Cormack's assistant.
Cormack had been out of management for three years before taking over at the Fife club.
He had been working as a scout for Liverpool.