The club announced on Thursday that the two parties have mutually agreed to part ways, with Alonso's time at the club coming to an end after just over a full year.
Miami ended the season with a record of seven wins, three draws and 13 losses, sealing a 10th-place finish in the Eastern Conference and a playoff berth.
“Going through the journey of this inaugural season with Inter Miami has been an incredible experience, and I am thankful to the ownership group for the opportunity," Alonso said.
"I want to thank the staff for their work and friendship, the players for their efforts on the field, and especially the fans for their constant support throughout the year. I wish everyone the best this upcoming season."
Owner Jorge Mas said: “On behalf of the organization, I want to thank Diego for his hard work and dedication during our inaugural season and wish him the best in his future endeavors.
"This was a difficult year and a very tough decision for everyone, but we believe it is the right step for the club. We have great expectations for Inter Miami in the short and long term.”
Source: Goal
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