Expectations had been high with Argentina hosting the tournament and seeking a record 15th title, but "La Albiceleste" lost on penalties in the quarterfinals to neighbors Uruguay -- who went on to claim that milestone instead.
Batista, a World Cup winner as a player in 1986, replaced the iconic Diego Maradona as coach in July 2010, having previously guided his country's Olympic team to a gold medal at the 2008 Beijing Games.
The Argentine Football Association (AFA) hopes to announce a successor to the 48-year-old former Argentinos Juniors boss within a week.
"The national teams committee has decided to rescind the contract that attached Mr. Batista with the Argentinian Football Association," AFA spokesman Ernesto Cherquis Bialo told reporters.
"In a very good-natured, mature telephone conversation, Mr. Batista and Mr. Julio Grondona (the AFA president) talked and Batista left his situation in the hands of the AFA.
"Batista is a man who does not need any explanation. He talked to the AFA president and allowed him to decide whatever he considers the right thing."
Cherquis Bialo said the AFA would now take time to consider potential candidates to replace Batista.
"In the upcoming seven days, we hope we can reveal the name of the new coach. The candidates' names will be evaluated by the national teams committee," he said.
The main objective for the new head coach will be qualification for the 2014 World Cup in Brazil, a campaign which begins on October 7 with a home match against Chile.
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