The former Sri Lanka and Bangladesh coach, who played seven Tests and a solitary one-day international for Australia, took charge of Pakistan in March 2012 on a two-year deal.
He was initially a success and inspired the country to the Asia Cup and the semi-finals of the ICC World Twenty20.
But he presided over a disastrous Champions Trophy campaign five months ago, with Pakistan losing all three matches against India, South Africa and West Indies, and more recently they suffered the ignominy of a Test defeat against minnows Zimbabwe.
There were rumours the Pakistan Cricket Board would not opt to renew Whatmore's contract, but the 59-year-old indicated he was not seeking a fresh deal.
A statement on the PCB official website said: "In order to lay speculation to rest with regard to the status of Mr. Dav Whatmore, Head Coach of the Pakistan National Cricket Team, the PCB clarifies that according to the settled terms, the
Board's contract with him expires on February 28, 2014.
"Earlier this month Mr. Whatmore informed the PCB that he would not be seeking a renewal of his contract due to his personal and family reasons.
"The PCB acknowledges the fact that Mr. Whatmore enjoys the respect of the Pakistan Cricket Team and management for his commitment and services to the development of the game in the country.
"Under the circumstances, the PCB and Mr. Whatmore have mutually agreed to conclude the contract on February 28, 2014.
"Dav Whatmore will continue working with Pakistan Cricket Team till the expiry of his contract."