Teti, who had worked with Pereira earlier in his career, joined Wolves following the departure of sporting director Matt Hobbs - and was named director of professional football as part of a restructure at Molineux.
After Pereira's sacking on Sunday following a rotten start to the Premier League campaign - there had been much speculation over what the future held for Teti.
And it has now been confirmed that he has now left the club by mutual consent following a short spell.
In a statement, executive chairman Jeff Shi said Teti had made a 'positive contribution' to the club.
He said: "Domenico approached his role with total professionalism and built strong working relationships across the club during his time with us.
“He made a positive contribution to our football processes and has carried himself with integrity throughout.
“We thank him for his efforts and support and wish him every success in the future.”