Egypt s Portuguese head coach Carlos Queiroz. AFP
Recent reports suggested that the majority of EFA's board members were in favour of giving Queiroz a fresh deal despite the Pharaohs' shootout loss to Senegal following a 1-1 aggregate draw in a World Cup qualifying playoff last month.
However, they reportedly failed to reach a unanimous agreement as the veteran Portuguese boss departs after seven months in charge.
The EFA said in a statement that its chief, Gamal Allam, held a meeting with Queiroz to discuss his future.
"After today's meeting, the board of directors decided to thank Carlos Queiroz … after the two parties agreed to terminate the contract by mutual consent," the statement read.
"For his part, Queiroz expressed his happiness with the period he spent in Egypt as well as his love for Egypt and the Egyptians, stressing his support for Egyptian football."
Queiroz was named as Egypt's coach in September last year, succeeding Hossam El-Badry following the team's stuttering start to their World Cup qualifying campaign.
He set about tightening Egypt's porous defence, introducing some conservative tactics which proved efficient on any occasions, although he still came under fire for the team's shortcomings in the final third.
He was lauded for introducing some promising new faces, who caught the eyes with convincing displays at the FIFA Arab Cup as a second-string Egypt side finished fourth in Qatar in December.
In the African Nations Cup, Egypt brushed aside several of the continent's heavyweights en route to the final -- the Ivory Coast, Morocco and hosts Cameroon.
However, they suffered an agonizing shootout loss to Senegal in the final before slumping to an equally painful defeat by the Teranga Lions in a two-legged World Cup qualifying playoff, leaving Queiroz to rue his bad luck.
"To all my players and my staff, my recognition and humble thank you so much. You will be always in my heart. It was my privilege to work and be helped by such dedicated and capable professionals and wonderful friends," the 69-year-old said following the defeat.
"Without you, nothing could be possible for me in my life. I am very much proud of you Lads. My best wishes and enormous gratitude to all Egyptian fans. To the future."
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