gnome-terminal && ssh

precmd() { print -Pn "\e]0;%n@%m: %~\a" }

zsh provides some functions and expansions, which we will use:

precmd ()   a function which is executed just before each prompt
chpwd ()    a function which is executed whenever the directory is changed
\e          escape sequence for escape (ESC)
\a          escape sequence for bell (BEL)
%n          expands to $USERNAME
%m          expands to hostname up to first '.'
%~          expands to directory, replacing $HOME with '~'