Hungary manager Sandor Egervori had his offer of resignation accepted after his side's 8-1 loss to Netherlands.
Egervori's men were well placed to qualify for the World Cup play-offs prior to the clash, starting the night in second, but they ended it wounded and in fourth.
A passage to Brazil is now all-but closed off to them and 63-year-old Egervori's offer to step down was accepted by the Hungarian Football Federation.
In a statement on its official website, the federation said: “The resignation was accepted immediately.”
Egervori added: “It is fair that I offered my resignation. It was a real blow for Hungarian football and it was appropriate. I hope the hard work of the last three years will not be lost.”
Egervori's assistant, Joseph Csabi, will take the team for the final World Cup qualifier against Andorra.