The hosts were eliminated in the quarter-finals by eventual tournament winners Uruguay following a 5-4 penalty shoot-out reverse.
"The national teams committee has decided to rescind the contract that attached Mr Batista with the Argentinian Football Association,” announced AFA spokesman Ernesto Cherquis Bialo.
"In a very good natured, mature telephone conversation, Mr Batista and Mr Julio Grondona (the AFA president) talked and Batista left his situation in the hands of the AFA.
"Batista is a man who does not need any explanation. He talked to the AFA president and allowed him to decide whatever he considers the right thing."
Argentina hope to name a new successor within a week as they begin preparations for their 2014 World Cup qualifying campaign which commences in October.