The Italian manager, who has overseen five successive Serie A titles and won four straight Coppa Italia trophies, won't be on the bench for the 2019/2020, Juventus said in a brief statement.
Juventus still has two games to play, with the Turin club facing Atalanta at home on Sunday, before Allegri's reign ends at Sampdoria.
Despite dominating the country's domestic scene since replacing Antonio Conte as the club's coach in 2014, Allegri leaves having failed to bring Champions League glory to the club.
His Juventus side was beaten in the final by Barcelona in 2015 and by Real Madrid in 2017. After signing Cristiano Ronaldo from Real Madrid in the summer of 2018, this season was viewed as Allegri's greatest opportunity.
However, the Italian giant was soundly beaten in the competition's quarter-final by Ajax.
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