Tanzania sacked Nigerian head coach Emmanuel Amunike following their elimination in the group stage at the 2019 Africa Cup of Nations (AFCON).
The Nigerian coach was notified of the decision on Monday.
The Kilimanjaro Stars were bombed out of the first stage of the tournament in Egypt last week.
The Tanzanian Football Federation (TFF) issued a formal statement on its official website announcing an agreement with coach Amunike to terminate the contract between the two sides.
The TFF thanked the former Nigeria international for taking the side back to Africa's flagship football tournament and said they will begin the process of getting a new coach immediately.
"We will return to our country and evaluate the situation with the Football Federation, because there are many things that need hard work to put in place," he said.
Tanzania lost their three group matches at the African Cup of Nations against Algeria, Kenya and Senegal - finishing fourth final in the Group D standings with no points.