Lee was fired after meeting Wednesday with City Manager Norton Bonaparte, the station said. An official announcement was expected Thursday.
Lee was the city's top law enforcement official when neighborhood watch volunteer George Zimmerman shot and killed unarmed teenager Trayvon Martin Feb. 26 in a gated community in Sanford. Lee submitted his resignation letter in April to help Sanford "move forward beyond recent events," but city officials rejected the resignation at the time.
Lee was placed on administrative leave in May when Richard Myers was hired as interim police chief.
Zimmerman is charged with second-degree murder in the shooting death of Martin. He says he shot Martin in self-defense.
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