AFA spokesman Ernesto Cherquis Bialo announced the move in the wake of the team's disappointing campaign in the Copa America, at which they were hosts.
Argentina were eliminated in quarter-finals by Uruguay, who went on to lift the trophy with a 3-0 win over Paraguay in Buenos Aires on Sunday evening.
Cherquis Bialo told reporters: ''The national teams committee has decided to rescind the contract that attached Mr Batista with the Argentinian Football Association.
''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.''
As Argentina start the 2014 World Cup qualifying campaign in October, the AFA hope to name Batista's successor within a week.
''In the upcoming seven days, we hope we can reveal the name of the new coach,'' Cherquis Bialo said. ''The candidates' names will be evaluated by the national teams committee.''
Argentina were scheduled to play a friendly against Romania next month, but Cherquis Bialo announced it has been cancelled.
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