The 51-year-old had been in charge at the AFAS Stadion since 2010, overseeing two fourth-placed finishes in the Eredivisie and a disappointing final standing of 10th last term.
But, despite AZ moving within two points of top spot in the Dutch top flight as they defeated PSV 2-1 at the weekend, the club have elected to part ways with their manager.
"On the basis of a lack of chemistry between the squad and the coach and a lack of confidence, the club's directors do not see any possibility for further co-operation," read a statement on the club's official website.
Verbeek began his managerial career with Heracles in 2001, with his success during a three-year stay at the club leading to his appointment by Heerenveen.
The Dutchman subsequently enjoyed four years at Heerenveen, the club with whom he had spent almost the entirety of his playing career.
But a controversial spell at Feyenoord followed, with Verbeek sacked just months into his tenure after a breakdown in his relationship with his squad.
His appointment by AZ came after an impressive second stint with Heracles, but Verbeek is now on the search for new employment.
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