The news potentially opens the way for Thierry Henry to become the French club’s next boss after their former striker was linked with the role.
Former France and Arsenal star Henry, 41, began his career at Monaco and helped them win Ligue 1 in 1997.
Portuguese boss Jardim was appointed in 2014 and led the club to the French title in 2017, their first since 2000.
The 44-year-old also guided Monaco to the Champions League semi-finals in 2016-17 and helped develop players such as forward Kylian Mbappe, now at Paris St-Germain.
In a club statement, Jardim said: “I’m grateful and proud to have been Monaco coach for more than four years. I’ve always given my very best and worked with passion. We achieved some great victories together and I’ll always keep those memories.”
Monaco chief executive Vadim Vasilyev added: “I want to thank Leonardo with deepest respect for all the work he has done.
“His time here will remain as one of the most beautiful pages in the history of the club.
“Leonardo will still be part of the Monaco family.”