كتب : Omar AbdelAziz
The club officials denied the news earlier, but the decision was confirmed after Juve's 2-0 win over Mantova after the French boss failed to appear at the game’s post match conference on Saturday.
"Juventus and Didier Deschamps announce that they have mutually cancelled their contract, which had brought satisfaction, joy and success to both sides," a club statement read.
"The coach and the club have realized that there was no longer a basis to continue the relationship with the same mutual satisfaction and have therefore decided to go their separate ways amicably."
The 38-year-old, who captained France in their 1998 World Cup triumph, took charge of Juve after last season's match-fixing scandal which resulted in the club's demotion, but he managed to guide the club to a swift Serie A return.
However, Italian media reported that Deschamps' departure was due to a disagreement with Juve officials over future transfers in a meeting on Friday.
The former Monaco boss has also been recently tipped to succeed Gerard Houllier as manager of French champions Lyon following the latter’s exit.
Italy's 2006 World Cup winning coach Marcelo Lippi is a major candidate for the Juve bench according to local media as well.