Daniels served as the franchise’s American Hockey League (AHL) head coach for the past seven seasons, posting a 268-225-51 record during that time.
“We appreciate the years of service and hard work that Jeff provided for our organization,” executive vice president and general manager Ron Francis said.
“His contract expires at the end of June, and we will now begin the process of finding a new head coach for the Checkers.”
Daniels guided the Checkers to the Eastern Conference Final in 2010-11, the deepest Calder Cup Playoff run for the franchise’s AHL affiliate since the 1996-97 Springfield Falcons.
Charlotte failed to qualify for the playoffs in 2014-15, going 31-38-6-1 to finish 13th in the Western Conference.
Prior to becoming a head coach at the AHL level, Daniels spent four seasons with the Hurricanes as an assistant coach, helping to guide the team to a Stanley Cup championship in 2006.
As a player, Daniels appeared in 425 career NHL regular-season games, winning a Stanley Cup with the Pittsburgh Penguins in 1992, and helping Carolina reach the Stanley Cup Final in 2002.