Schattorie was in charge of the club in the ISL 2019-20 season. The club finished the last season at seventh place with just four wins in 18 matches.
"Kerala Blasters FC have parted ways with the Head Coach, Eelco Schattorie. We'd like to thank Eelco for his efforts and services during his tenure and wish him the best for the future," the club tweeted.
Earlier in January, All India Football Federation (AIFF) disciplinary committee had suspended Schattorie.
The apex football body found him guilty of serious misconduct during an (ISL) match number 58 between ATK FC and Kerala Blasters FC on January 12 at Kolkata.
( With inputs from ANI )