As earlier reported by SABC Sport, Chiefs and Nabi had been in negotiations to sever ties after the coach had been deemed unfit to lead the team into the remainder of the 2025/26 season, and especially the club's return to the CAF Confederation Cup.
Amakhosi had earlier announced that Nabi would not be on the touchline of their first preliminary round Confed Cup fixture away to Kabuscorp in Angola, with assistant coaches Khalil Ben Youssef and Cedric Kaze taking charge.
Ben Yousseff and Kaze have now been appointed interim co-coaches for the remainder of the season, with Nabi and the club reaching a settlement agreement on his three-year contract penned in 2024.
The Tunisian mentor had ended the club's 10-year trophy drought by claiming the Nedbank Cup in May, and their separation has come as a big surprise.
"Following the announcement earlier today of a mutual parting of ways between Kaizer Chiefs FC and Head Coach Nasreddine Nabi, the Club can confirm that Coaches Khalil Ben Youssef and Cedric Kaze will lead the technical team for the remainder of the 2025/26 season," read a statement from Naturena.
"Their leadership will ensure continuity and stability as the Club prepares for upcoming fixtures domestically and on the continent.
"The Club remains committed to its ambitions and thanks Amakhosi supporters for their continued loyalty, patience and support."