Valverde, 55, helped the club clinch two successive La Liga titles. Additionally, they are also leading the table by goal difference.
However, the team, which have Lionel Messi on their side have not been doing well at their games recently, and have failed to reach a Champions League final under his leadership.
The former coach had been under pressure since last season following Barcelona’s shameful 3 – 0 defeat to Liverpool at the Champions League semi-final match.
In a statement, Barca revealed that they had reached an agreement with Valverde to terminate his contract and thanked him “for his professionalism, his commitment, his dedication and his always positive treatment towards all that make up the Barca family”.
He has now been replaced with Real Betis former coach, Quique Setien.