The Turkish Football Federation said in a statement that the parties had decided to "disengage" as a result of "some issues unrelated to football."
Video footage, published this month, showed that the 63-year-old Turkish coach attacked the owner of a restaurant in the tourist center of the town of Alachati in western Turkey, accompanied by his family and two bodyguards.
According to news reports, the cause of the quarrel was due to commercial competition, with the Tarim smelter having a nearby restaurant.
Turkish newspaper Hurriyet reported that the owner of the restaurant had filed a complaint with the police.
Tarim took his third coaching career in August 2013, leading a number of major clubs on the continent, including Milan and Fiorentina, as well as Galatasaray, who led him to become the first Turkish team to win the continental title. With him the European Cup in 2000.
Tarim had previously guarded the prison of Jalata Sarai for 11 years, when he was a player, before heading for training.
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