The Portuguese boss' contract automatically ran out after Egypt lost to Senegal 3-1 on penalties following a 1-1 aggregate draw to miss out on a place in the Qatar finals.
"Dream is over. We try our best but today was not enough. From the bottom of my heart my gratitude to Egypt Federation for this honor of coaching the National Team," Queiroz said on Twitter.
"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.
"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."
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 loss to the Teranga Lions in a two-legged World Cup qualifying playoff, leaving Queiroz to rue his bad luck.
"Egypt should start preparing for the new phase and the upcoming World Cup," he told a news conference following Tuesday's loss.
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