"Brent and I explored many options and ultimately determined that it is best to proceed in different directions," Feaster said in a statement.
"On behalf of the Calgary Flames, we sincerely appreciate his hard work, dedication and commitment to our organization, and we wish him every success."
After two years as head coach with the New Jersey Devils, Sutter arrived in Calgary in 2009 with high expectations but in three seasons was never able to get the Flames to the playoffs.
He posted a combined record of 118-90- 38 with Calgary, who finished the 2011-12 NHL campaign five points out of the eighth and final playoff spot in the Western Conference.
"After discussions with Jay since the season ended, it was in the best interest of the organization and myself to part ways," said Sutter. "I wish the Calgary Flames all the best."
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