Avram Grant has quit as Ghana's head coach after more than two years in charge, the country's football association said on Tuesday.
The Ghana Football Association said in a statement that "the two parties will mutually part ways after their contract ends on February 28".
"Both parties have mutually agreed not to renew the contract upon its expiry," it added.
Grant's resignation comes five days after his side crashed out in the semi-finals of the Africa Cup of Nations to eventual winners Cameroon.
The former Chelsea manager, who guided the Blues to runners-up spot in both the Champions League and Premier League, was given a target of winning this year's tournament.
The West African side, who lost on penalties in the final two years ago to Ivory Coast, finished fourth this time round.
Grant took over from Kwesi Appiah in November 2014 following Ghana's disappointing World Cup finals appearance that included poor performances on and off the pitch.
Following his decision to step down he was quoted as saying by the BBC that "the time is right" for him to seek a new challenge and that he had enjoyed his time in charge.
"The passion and loyalty of the supporters is something I'll always remember," he added.