Russia have agreed to terminate head coach Fabio Capello's contract by mutual consent, the Russian Football Union (RFU) has announced.
A statement on the RFU website read: "The Russian Football union and the Russian national team head coach Fabio Capello have reached an agreement to terminate the employment contract by mutual consent.
"The RFU sincerely thanks Fabio Capello for his work as head coach and wishes him success in his future career.
"Fabio Capello, in turn, thanks the RFU for the help and support he has felt throughout the years. He is also grateful to the players for working together and to the fans for their sincere support for the team."
The RFU had been considering whether to dismiss Capello after last month's 1-0 defeat to Austria seriously dented the team's hopes of qualifying for Euro 2016.
Russia have won just two of their last 10 competitive games, with one victory coming against Liechtenstein and the other awarded by default when a match against Montenegro was abandoned due to crowd trouble.
However, the RFU, which is deeply in debt and losing money, had been faced with a reported €21 million compensation fee ($23.5m) to sack the Italian after handing him to a lucrative contract extension in January 2014.
Billionaire Alisher Usmanov had to lend the RFU several million euros on two occasions to pay Capello's salary, most recently last month, and Russia fans had started a crowdfunding bid to raise the funds required to pay off the former England boss.
Capello, who was appointed Russia coach in July 2012, oversaw qualification for the 2014 World Cup but could not guide the country out of their group in Brazil.
He leaves the post with Russia third in European Championship qualification group G, four points behind Sweden in the final automatic qualification place but on course to reach the playoffs for the tournament.