The Ghana Football Association (GFA) and national team coach James Kwasi Appiah have agreed to mutually part ways, the association said in an official statement here.
The two parties met Friday to reach the agreement on the departure of Appiah, reports Xinhua.
Lawyers of the two parties will meet next week to decide on the severance package for Appiah, based on the contract of his appointment, the statement said.
"The GFA wishes to thank Appiah for his diligent service to the country as the coach of the 'Black Stars' for the past two years. We wish him every success for the future," the GFA said.
The Executive Committee of the GFA resolved to fire Appiah just within 24 hours of leading the national team, called the 'Black Stars' to a vital win over Togo in the 2015 Africa Cup of Nations.
The ex-Ghana captain had signed a new two-year deal worth $25,000 after masterminding the country's qualification to the 2014 World Cup.
The public approval ratings of the Ghana coach is low after what some sports analysts described as "high profile" failures in the last African Cup and at the World Cup in Brazil.
Appiah previously served as an assistant coach from 2008 to 2012 and led the Black Stars to the semi-finals of the 2013 Africa Cup of Nations finals in South Africa.
The Ghana FA is already looking for a swift replacement, with former trainer Milovan Rajevac in the lead to get the job for the second time.
Ghana is currently chasing a place at the next African Cup, after beating Togo 3-2 last Wednesday to go second in Group E behind Uganda.