Chile coach Claudio Borghi has been sacked following Tuesday night's 3-1 friendly defeat to Serbia in St Gallen.
The result was Chile's fifth straight loss.
A ANFP statement read: "The board of the National Association of Professional Football, taking into account the recent performances of the Chilean national team and considering the requirements to qualify for the World Cup in Brazil in 2014, has following the match with Serbia terminated the contract with Claudio Borghi in order to maximise the chance of achieving that goal."
Chile are currently sixth in the South American World Cup qualifying group, level on points with Venezuela, who occupy the last of the automatic qualifying spots.
Borghi had been in charge since February 2011, when he replaced Marcelo Bielsa.
