Appointed in December, the former defender guided OH Leuven, owned by the same group as Leicester City—to an 11th-place finish, securing a spot in the playoffs for a potential European competition berth next season.
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"In those playoffs, the performances remained below expectations. That is why the club is now opting for change with a view to next season and is ending the collaboration with Coleman," Leuven said in a statement.
Coleman, famously led Wales to the Euro 2016 semi-finals. His managerial career also includes stints at Fulham, Sunderland, Coventry City, and Spanish side Real Sociedad.