WWE bosses are said to have fired legendary grappler Arn Anderson – one of The Four Horsemen – after an “incident” between him and McMahon.
Anderson had been with WWE for 18 years after joining the firm after they bought rival WCW in 2001.
He was inducted into the Hall of Fame in 2012 alongside his fellow Horsemen – Ric Flair, Barry Windham, James Dillon and Tully Blanchard.
Respected wrestling reporter Dave Meltzer revealed details were scarce but something happened backstage at an untelevised event.
It comes after WWE swung the axe last week cutting three top wrestlers – TJP, Tye Dillinger and Hideo Itami.
“Everyone is pretty much keeping quiet about what it was, but it was an incident with Vince. ”
Meltzer claimed there was an “incident” backstage between McMahon and Anderson.
It is said to have stemmed from an occurrence as a house show which Anderson took the blame for – but the row has divided the locker room between Arn and Vince.
The Enforcer is reportedly well liked backstage, and is pals with WWE boss Triple H and the company’s top star John Cena.
Anderson, 60, retired from the ring in 1997 and has seen worked backstage helping to plan matches and shows.
Meltzer said: “Arn got fired. It’s an incident, everyone is pretty much keeping quiet about what it was, but it was an incident with Vince.
“I know people who are siding with Arn. I know people who are siding with Vince.
“I don’t know the whole details of the incident other than it was something at a house show that evidently wasn’t handled well and Arn took the blame for that.”
Anderson has won at least 17 championships in his career, mostly in the tag team division with his partners Larry Zbyskzo and Tully Blanchard.
Meltzer added: “Arn and Vince were not really on the best of terms.
“There had been a lot of situations over the years and another one not too long ago.
“The thing with Arn is he’s well-liked by key people, Triple H, John Cena, he’s Cena’s agent.”
Anderson’s departure comes amid shuffle backstage in WWE with a number of new producers.
WWE legend Jeff Jarrett – who made a surprise entrance into the Royal Rumble – has taken up a new position.
Wrestlers including Chris Parks, better known as Abyss, Sonjay Dutt, and Hurricane Shane Helms have also been moved into new roles backstage.
McMahon, 73, remains the head honcho for WWE despite his children and son-in-law Triple H taking increasingly prominent roles in production and management.
The WWE boss now rarely appears on TV – last showing up on December 17’s edition of Raw after an 11-month absence.