Amunike took over last August and helped them qualify for the finals for the first time in 39 years.
"Tanzania Football Federation (TFF) and the coach of the national team, the Tarifa Stars, Emmanuel Amunike, have jointly agreed to terminate our contract," the TFF said in a statement on their website.
"Interim coaches will be announced later after an emergency executive committee."
Africa Cup of Nations
Africa Cup of Nations in doubt after draw postponed
06/06/2021 AT 15:02
Tanzania lost to Algeria, Kenya and Senegal in Group C in Egypt, scoring just two goals while conceding eight. Their 3-2 defeat to northern neighbours Kenya was particularly disappointing as they gave up the lead twice.
Following that loss, Amunike said the team needed exposure to stronger competition and that players needed to be in more competitive leagues for them to develop.
Only three members of the squad are based in Europe — Blackpool’s Adi Yussuf, Racing Genk’s Mbwana Samatta and Faridi Mussa, who plays in the lower tier of the Spanish league.
The squad also had 14 members plying their trade in the domestic league.
Additional reporting: Reuters
Africa Cup of Nations
2021 AFCON moved back to fall during Premier League season
15/01/2020 AT 15:18
Africa Cup of Nations
Thousands crowd streets to celebrate Algeria success
20/07/2019 AT 21:05