The Nerazzurri have parted ways with the technical director after a mixed January transfer window, which witnessed a backlash from fans over an attempted swap deal
The Nerazzurri chief had become unpopular with fans who were furious at the way the club had come close to swapping Fredy Guarin for Juventus' Mirko Vucinic last month before pulling the plug on the deal at the last minute.
The lack of quality signings in the January transfer window - Hernanes' deadline day move aside - have led to club president Erick Thohir taking action to remove Branca from the club.
"Internazionale wishes to announce that the club and Mr Marco Branca have reached an agreement to end their working relationship," the club said in a statement on their website.
"Internazionale hands the reins of the club's technical area to sporting director Piero Ausilio, who will report directly to managing director Marco Fassone.
"The club thanks Marco Branca for the valuable contribution he has made, first as a player and then as a director, and wishes him the best of luck with the next stage of his career.
"Mr Marco Branca also thanks the club for the opportunities it has offered him and for the prestigious results achieved together. He wishes Inter a highly successful future."
Branca had been on the San Siro club's payroll since 2002 before his contract was terminated by mutual consent with immediate effect on Saturday.