They lost to Uruguay and Panama this month, making them the first host country to be ousted from the group stage.
“We sincerely appreciate Gregg’s dedication over the last five years to both US soccer and the men’s national team,” stated Matt Crocker, sporting director of the US Soccer Federation.
“With his ability to unite a young team and drive the program forward, Gregg has gained the respect of all those in our organization.”
The position as manager has been associated with former Liverpool manager Jurgen Klopp; Crocker said that the “search process” had commenced.
Along with Canada and Mexico, the United States will co-host the 2026 World Cup.
The first tenure of 50-year-old Berhalte came to an end in 2022 due to an inquiry into his previous behavior.
When he came clean about kicking his wife when they were teenagers, he had been in the role for four years.
After looking into him, US Soccer concluded that there was “no legal impediment to employing him”.
His second stint lasted just 14 games, but during it, the USA won the Concacaf Nations League Gold Cup in 2021 and advanced to the round of 16 of the 2022 World Cup in Qatar.
Berhalter declared he was the best choice to take the team to the 2026 World Cup following Uruguay’s 1-0 victory.