The Red Bulls, beaten in the Eastern Conference semi-finals by New England Revolution on Saturday, said coach Arena's departure was by "mutual agreement".

"We've made progress this season but it is not where we want to be," managing director Marc de Grandpre said in a news release. "We made a promise to our fans to provide the best quality product on the field.

"Unfortunately we haven't achieved that promise to this point. I want to thank Bruce for his hard work. I am certain he will have success in his future endeavours."

Arena coached the U.S. from 1998 to 2006 and had two years left on his deal with New York.

The Red Bulls said they would begin their search for a new coach immediately.