Saadane quits as Algeria coach
"His decision to resign had been endorsed by the AFF's President Mohamed Raouraoua," it added.
Saadane, 64, was awarded a two-year contract extension in July despite returning from the World Cup in South Africa without a victory.
Saadane had led Algeria to their first World Cup finals appearance in 24 years and steered the team to the semi-finals at this year's Nations Cup.
Algeria finished with one point from three World Cup matches, drawing with England and losing to Slovenia and the United States.