The 45-year-old Arthur, who was appointed as coach in November 2011, came in for sharp criticism following Australia's poor performances and disciplinary issues within the camp.
Cricket Australia chief executive James Sutherland said it was a difficult decision but it was taken to make Australia a better side.
"This has been a difficult decision to make but one that we feel is necessary. We are looking to establish a high performing Australian cricket team that is consistent over a period of time," Sutherland said.
"Discipline, consistency of behaviour and accountability for performance are all key ingredients that need to improve. And we see that the head coach is ultimately responsible for that," he added.
Arthur, who had a contract till the end of the 2015 World Cup, said though it was disappointing he admitted that he could not do justice to his job.
"Naturally I'm very disappointed with how this has all ended. I certainly wanted to see the job through but I accept that the team hasn't been completely galvanised under my leadership and our performances have been inconsistent," said Arthur, under whom Australia has won 10 of 19 Tests, 18 of 39 ODIs and 7 of 16 T20s.
"Michael first approached Pat Howard in April after the recent Indian series and requested to stand down as a selector so that he could focus on his team's and his own preparation to play international cricket. This change will allow Michael to focus his primary responsibilities as a player and as captain," Sutherland said.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
