Vidmar, who was also the Socceroos assistant coach, has not had his contract renewed after five years in charge of the under 23s. No replacement was named when Football federation Australia announced the decision on Friday.
The Olyroos scored just two goals in three games to be eliminated at the group stage of Asian qualifying.
It sealed Vidmar’s fate after his team also failed to reach the London Olympics soon after he took over in 2010.
“As a former Socceroo champion and professional in Europe and Asia, Aurelio brought a wealth of experience to the coaching roles he performed,” said FFA chief executive David Gallop.
“Viddie was a committed member of the coaching staff and made a key contribution to the development of many young players.
“His role with the Socceroos’ campaigns for 2014 World Cup and 2015 Asian Cup was highly regarded. I wish him well on the next stage of his journey in football.”
Vidmar participated in a report on the Olyroos’ qualifying campaign for Rio, which was conducted by FFA’s National Teams Unit.
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