Terim quits Turkey following failure to qualify
The Turkish Soccer Federation said in a statement on Sunday they had accepted his resignation.
Terim will preside over Turkey's one remaining World Cup Group Five qualifying match on Wednesday against Armenia, who also failed to qualify.
Terim has managed Turkey since 2005 and took his side to the semi-finals of Euro 2008 with a series of last-gasp victories before losing to Germany.
However, Turkey's campaign in qualifying for the 2010 World Cup was hit by repeated injuries and patchy performances.