The Belgian club revealed on Friday that Hazard, who has rejoined the club on loan from Chelsea for a second successive campaign, would be replacing experienced defender Davy de Fauw.
De Fauw at the time stated he was happy for Hazard to take the armband, but there was furore amongst the club's fans - amid claims the appointment was made at the behest of Chelsea.
However, Hazard has now handed back the armband - just 24 hours after being appointed and reports in Belgium have claimed that the youngster could even be recalled by Chelsea and sent elsewhere.
In a statement, Zulte Waregem said they would fight to keep him: "The SV Zulte Waregem board seriously regrets the commotion which started after the captaincy change.
"The chairman, the delegated board member and the coach have done the maximum to keep Thorgan Hazard at Zulte Waregem.
"We ask everyone to support our team, especially Thorgan and Davy, massively today evening and on Wednesday against PSV, a game where still is much possible."
Zulte face Dutch giants PSV Eindhoven next week in the second-leg of their UEFA Champions League qualifier, having lost the first-leg 2-0 in Holland.