The Dutchman, who took up the role in July 2011 on a three-year deal, was shown the door following last week's disappointing Gulf Cup of Nations campaign.
Saudi Arabia failed to get past the group stage in Bahrain, with their only win a 2-0 success
against Yemen.
The decision was made by the Saudi Arabian Football Federation (SAFF) today following a meeting of the board of directors, headed by chairman Ahmed Eid Al-Harbi.
A statement on the SAFF's official website said: "It has been agreed with the Dutchman Mr Frank Rijkaard to terminate his contract.
"We would like to thank Mr Rijkaard and wish him every success in the next step of his career."
Spaniard Sergio Lopez Caro will take charge of the team for the upcoming Asian Cup qualifiers along with Salman Quraini. Saudi Arabia will contest Group C against Iraq, China and Indonesia.
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