Lito Vidigal ended his tenure as Angola coach after the nation's poor performance at the Africa Cup of Nations made his position untenable.
"We announce the friendly and mutually agreed termination of the contract with national coach Lito Vidigal," an Angola Football Federation statement said.
"Unfortunately the results and the performance of Palancas Negras at the 2012 African Nations Cup created an atmosphere which does not allow the coach's continuity."
Angola failed to get past the group stages of this year's Nations Cup finishing third in Group B behind Ivory Coast and Sudan.
They managed a win over Burkina Faso in their opening game before drawing with Sudan and losing to Ivory Coast.
The FAF are yet to find a replacement for Vidigal, who had a contract until the 2013 Nations Cup in South Africa.
The first task for a new coach will be to prepare the team for two 2014 World Cup qualifiers in June.
They will begin their campaign at home to Uganda, whom they edged out to qualify for the 2012 Nations Cup finals.
A trip to face Liberia will be their second Group J game, Senegal are the other team in the pool.