The club said in a statement that it had accepted Capello's resignation ahead of the expiration date of his contract, reports Xinhua news agency.
Romania's Cosmin Olaroiu is set to replace the Italian, who will continue to help Jiangsu Suning as adviser.
Capello, who has managed Real Madrid, Juventus, Roma, Milan and the national teams of England and Russia during his career, joined the Chinese club in June 2017 when it was languishing at the bottom of the table, despite having finished as runners-up in 2016.
Although Capello did not produce a magical turnaround, he helped stop the team's slide, securing 12th place out of 16 last season.
The team is again placed 12th this term, after registering one win and two losses.
Although the reasons behind Capello's exit were not announced officially, there had been speculation in the media that the move could be a result of his differences with the management and the team's star player, Brazilian Alex Teixeira.
The 71-year-old Capello had been without a job for two years after leaving his post of manager of the Russian national team in 2015.
Jiangsu Suning's new coach Olaroiu, who has already arrived in the city of Nanning, has experience of coaching Asian teams, having led clubs from Saudi Arabia, Qatar and the United Arab Emirates to trophies.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
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