"I want to thank Mike Mularkey for his contributions to our franchise over his tenure with our organization," Titans controlling owner Amy Adams Strunk said in a statement. "He took over our team during a low moment and together with Jon built a solid foundation for our franchise. I appreciated that Mike devoted himself to this team and the community.
"In fact, we did discuss extending his future with our team over the past week, but in those discussions about the direction of the team, it became evident that we saw different paths to achieve greater success.
"It is certainly unfortunate that we couldn't find enough common ground. I generally believe that continuity is the best path for success, but I also view this as an important moment for our football team as we try to make that next step to sustained success on the field. Jon will begin the search immediately to identify that person."
Mularkey served as interim head coach for the final nine game of the 2015 season before being hired as the full-time coach on Jan. 16, 2016. He led the Titans to back-to-back 9-7 seasons, making this year's playoffs, where they lost 35-14 to the Patriots on Sunday in the AFC divisional playoffs.