Former England international midfielder Reid was appointed as Thailand national coach in September 2008 on a four-year deal.
He had proposed to the Thai FA that he continue his duties as coach alongside his role at the Britannia Stadium but this was rejected and his contract was terminated by mutual consent on Wednesday.
Reid was full of praise for the Thai FA for the manner in which they handled the situation.
"They've been very helpful and I've got a great relationship with the chairman, Worawi Makudi," he said.
"I would like to go on record in thanking them for everything - being an international manager is great.
"Logistically it was just too difficult to stay on but we shake hands and go on our separate ways.
"I still have many friends over there though and will always look out for their results."
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