Valkanis, a former Adelaide United and City assistant coach, was given his chance in the top job last season when John van 't Schip quit to return to the Netherlands to be with his dying father.

The former centre-back had mixed results; City did make the finals but never looked like a realistic threat for the championship, and it was no surprise that his tenure as head coach was not continued at season's end.

Former Manchester United reserve coach Warren Joyce was hired to oversee a revamp of City's squad and playing style.

Valkanis had remained at the club for several months as an assistant, but will now look to continue his career elsewhere.

In a statement released on Monday morning the club said: "Melbourne City FC and Michael Valkanis have today agreed the mutual termination of his contract, effective immediately.

"Valkanis joined Melbourne City FC in a June 2016 as senior assistant Coach and was part of the coaching team that helped to win the Westfield FFA Cup in November 2016. In January 2017 he was appointed as interim head coach and later head coach, holding this role for the remainder of the 2016-17 season."