Jason Kreis is out as New York City FC manager after the team failed to make the MLS playoffs in the expansion franchise's inaugural season.
"The decision to part company with Jason and his team after two years of working together has not been taken lightly and this is a difficult announcement for all involved," club president Tom Glick said of the move.
"We thank Jason for his passion, his efforts and for his contribution to the historic inaugural season of New York City FC. Many memories of this first season will be indelibly etched in the minds of all involved with the club and Jason and his team have played a huge part in that.
"We wish him all the very best in what will undoubtedly be a continued successful career in soccer management."
Despite being able to count on the likes of former UEFA Champions League winners David Villa, Frank Lampard and Andrea Pirlo, NYCFC finished a disappointing eighth in the Eastern Conference standings, 12 points away from a postseason berth.
"While the challenges of building and integrating a new team are recognized, it was felt by the board, following a comprehensive review, that there was not enough evidence of the dynamics required to improve the performance of the team for the next season and beyond," said a club statement.
An announcement will be made once a new coach is confirmed, the statement said.