The three-time Champions League winning coach was dismissed by the German champions following their 3-0 defeat to Paris Saint-Germain in the Champions League this week.
He was one season into a three-year deal when it was decided to part ways with the former Parma, Juventus, Milan, Chelsea, PSG and Real Madrid manager.
After taking over from Pep Guardiola for the 2016-17 season, Ancelotti led Bayern to a fifth consecutive league title along with two DFL-Supercup trophies.
But after being shown the door, he posted his thanks on Twitter.
He wrote: “It has been a great honour to form part of Bayern’s history. I would like to thank the club, the players and its amazing fans.”
Thiago Alcantara responded with: “It has been an honour to play for you. I wish you all the luck in the world for your next stage.”
Assistant boss Willy Sagnol has assumed temporary charge of the team ahead of their Bundesliga clash with Hertha BSC on Sunday.