"The Ghana Football Association (GFA) and Black Stars coach James Kwesi Appiah have agreed to mutually part ways," a statement on the GFA website read on Friday.
"The two parties met on Friday morning to reach the agreement on the departure of Mr Appiah.
"The lawyers of the two parties will meet next week to decide on the severance package for Mr. Appiah based on the contract of his appointment.
"The GFA wishes to thank Mr Appiah for his diligent service to the country as the coach of the Black Stars for the past two years. We wish him every success for the future."