Former Kuwait, United Arab Emirates, Saudi Arabia and Oman coach Macala, 67, joined Bahrain in June 2007 and came agonisingly close to taking the Gulf side to a maiden World Cup appearance earlier this year after losing 1-0 on aggregate in a play-off against New Zealand.

The 67-year-old, though, did guide Bahrain successfully through the qualifying campaign for next year's Asian Cup finals in Qatar after finishing second behind Japan in Group A.

"The contract was ended in a mutual agreement between the two parties according to the decisions of the executive committee of the Football Association," said a Bahrain Football Association statement.

Bahrain finished second in the third round of World Cup qualifiers behind Australia and Japan before stunning four-time finalists Saudi Arabia in the Asian play-off after a dramatic 2-2 draw in Riyadh.

But after also drawing 0-0 at home with New Zealand in the first leg, suffered a 1-0 defeat in Wellington thanks to Rory Fallon's strike to lose out in the play-offs.

Bahrain are drawn with Australia, India and South Korea in Group C of the Asian Cup, taking place next January.