Marc Wilmots has left his post as Belgium coach after his bosses admitted "the intended goals had not been reached".
The Red Devils were eliminated in the quarter-finals of Euro 2016 earlier this month, suffering a 3-1 defeat to Wales.
A statement published on the Belgian federation's official website on Friday said: "The Royal Belgian Football Association have made an agreement with Marc Wilmots to end his contract, that lasted until 2018.
"The RBFA's technical commission have made an evaluation of the recent UEFA Euro 2016 and have declared that the intended goals have not been reached.
"There is a common sense that the team needs a new impulse to lead this group towards a top result at a major tournament.
"The Belgian FA will immediately start the procedure to find a new head coach, in a transparent way.
"The idea is to start the upcoming games in September with a new coach, beginning with an international friendly game in Brussels against Spain on September 1."
Wilmots, 47, also oversaw Belgium's run to the last eight of the 2014 World Cup, where they were beaten 1-0 by Argentina, after being appointed to the job in 2012.
The federation's statement added: "We would like to thank Marc Wilmots for his work during the last four years.
"With Marc Wilmots as a head coach, the Red Devils have climbed from the 54th position to the top of the FIFA world rankings.
"He managed to win 34 games out of 51, including eight draws. Above all, the fans have reinstalled their love for the Belgian Red Devils during this period."