"While I've greatly enjoyed coaching NYCFC and the incredible life experience of living in New York, in mutual discussion with the club, I feel this is the right time for myself and my family to look for other opportunities as I develop my career as a head coach," Torrent said in a statement issued by the club.
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"I'd like to thank NYCFC for giving me this opportunity. I've learned a lot during my time at the club after working with a fantastic sporting department and a great group of coaches.
"I'd specifically like to thank the NYCFC players, staff and fans. The club has a fantastic group of talented and hard-working players and I have no doubt they will continue to be successful for many years to come. To the fans, thank you for always supporting the team and making me feel so welcome in New York since day one. I wish everyone good luck and a lot of success."
Assistant coaches Albert Puig and Jordi Gris, director of performance Francesc Cos, and head of performance Ismael Camenforte departed the club along with Torrent.
Torrent, 57, took over at Yankee Stadium for Patrick Vieira in 2018, following more than a decade on Pep Guardiola's staff at Barcelona, Bayern Munich and Manchester City.
The Catalan coach topped the Eastern Conference with NYCFC this year, but there had been uncertainty about his future since a defeat to Toronto FC in the playoffs in October.
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"I'd like to sincerely thank Dome and the coaches for their hard work since joining NYCFC. With Dome leading the team, we had an excellent regular season and we were extremely proud to finish top of the Eastern Conference," NYCFC vice chairman Marty Edelman said.
"In discussions with Dome since our season finished, we've decided that this is the right moment for both parties to focus on new opportunities."
Sources told ESPN FC said that Torrent has drawn interest from a number of other MLS clubs and could choose to remain in North America.
Torrent led NYCFC -- who, like Man City, are owned by the City Football Group -- atop the East playing an attractive brand of football this season. However, NYCFC fell at the first hurdle in the playoffs.
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