"I have informed Tiger Woods this evening that I will no longer be his coach," Haney said in the statement released to Golf Channel. "I believe that there is a time and place for everything, and I feel at this time and at this place in my life I want to move forward in other areas."
The announcement came the same day as Woods told a news conference he was not sure when he would return to the game after a painful neck injury forced him to quit the Players Championship in Florida during last Sunday's final round.
Woods said he would undergo tests this week to determine the full extent of the problem.
Returning from a self-imposed, five-month exile at last month's U.S. Masters after revelations of a string of marital infidelities, Woods tied for fourth at Augusta National but missed the cut at Quail Hollow before pulling out at Sawgrass.
Calling his opportunity to work with Tiger "a dream come true," Haney said Woods had achieved "a level of greatness that I believe the game of golf has never seen before."
"I will always appreciate the opportunity that I have had to contribute to his successes," Haney said.
"However, I believe at this time that it is in both of our best interests for me to step aside as Tiger's coach.
"Tiger has been through a lot in the last six months, and I really believe that given the chance, mind free and injury free, we will all see Tiger Woods play once again like we all know he can."
(Reporting by Larry Fine, Editing by Greg Stutchbury)