In a statement, the Turkish Football Federation said it decided "to part ways with Mr Kuntz within the framework of goodwill and professionalism".
This came two days after they denied he would be fired following the country's 4-2 friendly defeat to Japan.
Kuntz, 60, said his players needed to work harder and that he "should not take all the blame".
The former German national team striker, who scored against England in Euro 96, was appointed Turkey's boss in September 2021 after leading the German under-21 team to European Championships titles in 2017 and 2021.
Turkey won 12 of Kuntz's 20 matches in charge but failed to qualify for last year's World Cup in Qatar.
The side haven't reached a World Cup since finishing third at the 2002 tournament hosted by Japan and South Korea.
