Red Bull was 12-11-7 in 2007 but was eliminated Saturday in the first round of the playoffs by New England. The team was 16-16-10 overall under Arena.
"We've made progress this season, but it is not where we want to be," Red Bull Managing Director Marc de Grandpre said Monday. "We made a promise to our fans to provide the best quality product on the field. Unfortunately, we haven't achieved that promise to this point. Thus, we've come to a mutual agreement to part ways."
Arena said he and de Grandpre "decided mutually that this was the best move for Red Bull New York.
Arena has a 77-51-10 regular-season record in coaching Red Bull and D.C. United. He also coached the U.S. team in the 2006 World Cup.
Ray Liotta sues skin care company over use of likeness
Millions of Getty images now available for free via embed tool