"(The federation) has acknowledged the difficulties of the captain to ... get the best out of the best players," the FFT said in a statement.
Clement, who took Les Bleus to the 2014 final, had a contract until the end of the 2016 season.
Cedric Pioline and Yannick Noah, the last French man to win a grand slam title in 1983 at the French Open, are among the favourites to take over from Clement.
Clement, who won the Davis Cup as a player in 2001, started his stint as captain in 2013.
(Reporting by Julien Pretot; Editing by Amlan Chakraborty)
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