|Predrag Badnjarevic had coached BC Timisoara since July 2011|
The Romanian club finished runners-up in both their domestic league and cup competition and earned the right to participate in the EuroChallenge.
So far this season, they have won seven of their first nine games in the LNB and still maintain options to qualify to the Last 16 of the European competition.
On Thursday, the club and Badnjarevic decided 'by mutual consent', according to a statement on BC Timisoara's official website, that the time had come to go their separate ways.
"We agreed with Mr. Badnjarevic to terminate our collaboration," club president Leontin Demaio said.
"This is not the best time for a change but we hope it will be good for the team.
"I would like to thank the coach for all his achievements while he was defening our club's colours."
In his time at the club, Badnjarevic led the team to 35 wins in 50 LNB league games and had a 3-3 record in the domestic cup.
"Overall, I am very satisfied with what we have achieved in Timisoara, the way we worked with the players," the 59-year-old Serbian coach said.
"We did everything we could to create a name for the club in basketball.
"As I told the guys, they now need to have the best results and fight for their goals this season."
The club has also confirmed that Srdjan Jovanovic, who was Badnjarevic's assistant, will guide the team in their away game at Craiova at the weekend.
It is yet unclear whether Jovanovic will remain at the helm for the remainder of the season.