Coyle joined MLS outfit Houston in 2014 following spells with Bolton Wanderers in the Premier League and Wigan Athletic in the Championship.
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Coyle leaves Houston Dynamo
Owen Coyle and Houston Dynamo have agreed to part ways, with the 49-year-old old claiming he wants to be closer to his family back in England.
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The Scotsman guided Houston to 15th in the overall standings in his first season, winning 11 out of 34 games.
Dynamo are last in the Western Conference this term, having won just three times to claim 11 points from their opening 12 games.
Coyle said in a statement: "I asked [Dynamo president] Chris [Canetti] if I could speak with him today and I explained to him the challenge of being away from my family and how we all want the best for Houston Dynamo.
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"I want to wish all members of the staff, from owner Gabriel Brener to president Chris Canetti to general manager Matt Jordan, everyone has been such a source of support, along with the players and the technical staff.
"I'd like to thank the Dynamo supporters, who have been outstanding. We have a brilliant club, and I have no doubt success is just around the corner."
Dynamo assistant coaches Wade Barrett, Paul Caffrey and Paul Rogers will manage the side in Saturday's game at Vancouver Whitecaps, while their colleague Sandy Stewart joined Coyle in departing the club.
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