The 62-year-old took the helm in February 2024 and renewed his contract until 2028 before the World Cup got underway.
"The Algerian Football Federation announce that their contractual relationship with the national team head coach, Mr. Vladimir Petkovic, and his coaching staff has officially come to an end today, on a mutual agreement between the two parties," the local soccer governing body said in a statement.
Algeria made it to the round of 32 at the 48-team World Cup in North America as one of the best eight third-placed teams, losing 2-0 to Switzerland.
They begin qualification for the 2027 Africa Cup of Nations in September, where they have been drawn in Group I alongside Zambia, Togo and Burundi.