The Mariners made the announcement on Thursday. The rest of Seattle's coaching staff will return next season.
Chambliss was Seattle's hitting coach the past two seasons. The 63-year-old previously was the hitting coach for the New York Yankees and Mets, St. Louis and Cincinnati.
The Mariners finished last in baseball this season in batting average (.234), on-base percentage (.296), slugging percentage (.369) and on-base plus slugging (.665). They were also last in baseball in most major offensive categories in 2011 as well.
General manager Jack Zduriencik says the search for a new hitting coach will begin immediately.