Lamouchi took charge of the Championship side in January and won six of his 18 games to keep them in the second tier of English football.
He joined on a short-term deal and there were suggestions that he could continue at the club beyond the end of the season.
However, it emerged on Tuesday that the Frenchman has decided to leave Cardiff following talks with the club ownership.
It has been claimed that Lamouchi was initially open to staying at Cardiff beyond the end of his short-term deal.
However, talks between Cardiff and the Frenchman did not go according to plan and he decided to move on.
There were disagreements over the transfer plans in the next window and the decision was taken to part ways.
Lamouchi earned credit for avoiding relegation at Cardiff but he will not be at the club next season.
The Bluebirds will now look for a new manager as they seek to have a better season next year.