Frenchman Renard, 54, took the Green Falcons to a memorable World Cup group stage victory over Argentina in November.
Renard's departure was confirmed after Tuesday's 2-1 friendly defeat by Bolivia.
"The Saudi Arabian Football Federation Board of Directors has agreed on the contract termination of the head coach of the Saudi national team Mr Herve Renard upon his request," the governing body said on Twitter.
"A legal settlement has been reached to end the contract between the two parties.
"The president of the board of directors of SAFF wish for Mr Renard every success in his future career."
The two-time Africa Cup of Nations winner has been touted as favourite to succeed Corinne Diacre before this year's Women's World Cup in Australia and New Zealand.
"Renard resigned and Saudi FA accepted it," a source at the Saudi Arabian football association told AFP.
"The match against Bolivia tonight is his last as Saudi coach.
"We tried to dissuade him, but he was determined to return to his country and lead a national team there.
"We can't prevent him from achieving his dream."
Earlier this month, Diacre was sacked as France coach just months out from the tournament after her position was weakened following a revolt by leading players.
France have four friendlies before starting their World Cup campaign against Jamaica in Sydney on July 23.