The Dutchman started the job as Turkey boss in August 2010 with the aim of qualifying for Euro 2012, but the Turks failed to make it to next year's tournament in Poland and Ukraine as Croatia proved to be too much of an obstacle in the play-offs.
"After negotiations between Guus Hiddink and the Turkish Football Federation's board of directors, an agreement has been reached to terminate Guus Hiddink's contract by mutual consent," a statement on the TFF website reads.
"We would like to thank Guus Hiddink for his work with Turkey and wish him all the best for the future."
The 65-year-old Hiddink was in the past successful as head coach of the national sides of the Netherlands, South Korea, Australia and Russia.
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