Vaas tendered his resignation to SLC and said he made the decision after being disappointed with functioning of the governing body.
However, SLC CEO Ashley de Silva said Vaas' contract had ended this month and the board was not contemplating renewing it.
Vaas, 41 was appointed Sri Lanka's fast bowling coach in 2013 and was on a two-year contract, SLC said.
It was believed that Vaas and Sri Lanka's head coach Marvan Atapattu were not getting along well in recent times.
Vaas, a member of Sri Lanka's 1996 World Cup winning team picked up 355 Test wickets and 400 ODI wickets in a career spanning over 14 years.
Image: Chaminda Vaas.
Photograph: Gareth Copley/Getty Images