The Dutchman has had his contract terminated by the Turkish Football Federation after he failed to guide Turkey to a play-off win over Croatia, missing out on qualification for next summer's European Championship.
Turkey held Slaven Bilic's side to a 0-0 draw in Zagreb on Tuesday night but their 3-0 defeat at home in Istanbul last Friday proved costly - particularly for Hiddink.
Walking away: Guus Hiddink's contract as Turkey has been terminated
A statement on the official TFF website read: 'Following the meeting between Turkish Football Federation Executive Committee and Turkey head coach Guus Hiddink, the Dutch coach's contract has been terminated by mutual consent.
'We would like to thank Mr Guus Hiddink for his services during his working period, and wish him all the best in his future career.'
Ajax would like the 65-year-old to return to his homeland Holland in a director of football capacity but it is a similar role at Stamford Bridge that Hiddink could turn to instead.
Hiddink insists he will not rush his decision but hinted a reunion with the likes of John Terry and Frank Lampard could be on the cards.
Silver service: Hiddink was a popular figure at Chelsea, guiding the Blues to FA Cup success in 2009
'I've not made up my mind about the future yet,' he said.
'I'm going to take some time off and then we will see what happens, but I had a wonderful time in England.
'It was great at Chelsea, a terrific time, but that doesn't mean I am ready to start tomorrow. I need some time to reflect.'
? Hiddink was popular figure at Chelsea when he took over from Luiz Felipe Scolari on a caretaker basis in 2009 and guided the club to FA Cup glory.
The players did not want him to leave before he opted to resume his full-time role at the time with Russia and it is understood he remains a close friend and confidant to owner Roman Abramovich.
Friends: Hiddink is a close confidant to Chelsea owner Roman Abramovich
His possible return, however, could put pressure on young Portuguese boss Villas-Boas who has seen his side lose three league games so far this season, putting them nine points behind leaders Manchester City in fourth place.
Look out: Chelsea boss Andre Villas-Boas
'I'm not ready to retire, I like to be involved with a team on a daily basis,' Hiddink added.
'But maybe I am ready to step out of the limelight a little bit, away from the cameras. Hopefully I will still be involved but perhaps it will be as an adviser or a consultant.'
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Source: Daily Mail
Source: Daily Mail