In a media release the federation said an amicable agreement had been reached over a payout for the final year of Ferrin's contract.
Last December, Ferrin failed to travel with his squad for the start of their African Nations Cup preparations because of a dispute over his unpaid salary. The problem was later resolved.
Ferrin took over as Angola coach in July last year and won two out of 10 matches in charge. Angola finished behind Senegal and Uganda in their World Cup qualifying group.