The news comes after the 55-year-old underwent stomach surgery which will force him to be away for more than four weeks from the Qatar national team, who are currently taking part in the final round of the 2010 World Cup qualifiers.

Qatar FA president Sheikh Hamad Khalifa Al Thani announced the decision at a press conference at Qatar FA headquarters.

"We had a meeting with coach Fossati on Tuesday and decided to end the contract," said Sheikh Hamad.

"The meeting was in the presence of Qatar national team players after a request from Fossati who wanted to tell them the decision in person.

"The reason behind this decision was the conditions of coach Fossati who had surgery recently which will keep him away from the national team.

"The doctors didn't give us a specific date for his return and that's why we reached this agreement."

Sheikh Hamad went on to reveal French coach Bruno Metsu - who resigned as United Arab Emirates coach on Monday - is one of the candidates to take over.

"We are now negotiating with some coaches now," he said. "Former UAE coach Bruno Metsu is on the list and he is one of the options that we have at the moment.

"We will announce the new coach as soon as possible because we have to prepare the national team for the forthcoming match against Australia in the 2010 FIFA World Cup qualifiers."

Fossati made a brief statement in which he reiterated the view that the move was in the best interests of the Qatar team.

He said: "I know how hard it was to take this decision at such a critical time.

"However, we care for the national team which is the most important thing and we reached to a mutual agreement to end the contract."