The Hungarian Football Federation says Bernd Storck is out as coach of the national team, which he led to the 2016 European Championship, its first appearance there in 44 years.
Despite that high point, Hungary failed to advance to the 2018 World Cup, which included a crushing loss in qualifying to Andorra.
Hungary last participated in the World Cup in 1986 in Mexico.
Storck, from Germany, was also the federation sporting director and took over the top team in July 2015, compiling a record of eight wins, 10 losses, and seven defeats.
Football is a priority for Prime Minister Viktor Orban, also the founder of the Ferenc Puskas Football Academy. The government has spent huge amounts of public funds to build stadiums across the country.