The former Australian national coach, who was hired in May 2011 as NZC's director of cricket on salary understood to be $300,000-plus, is leaving immediately.
An NZC statement confirmed Buchanan was heading back to Australia ''due to family circumstances''.
He was originally contracted by former NZC chief executive Justin Vaughan for a four-year period, through until the 2015 World Cup.
He courted controversy with some of his left-field methods and former national coach John Wright cited differences with Buchanan as the reason he left the role last year.
It became clear in recent weeks that Buchanan's days were numbered, especially after the national selection manager he recruited, fellow Australian Kim Littlejohn, was also shown the door at the end of his two-year contract.
Fairfax Media reported this week that Buchanan had been effectively frozen out by current ceo David White. It appears his position became untenable and he decided to walk away.
''Buchanan, who took up the role at NZC in May 2011, is disappointed to be leaving NZC at this time as he has enjoyed his work there. However due to family circumstances, he has decided to return to Australia,'' the statement said.
''Buchanan's return to Australia will give him the opportunity to explore other roles and consultancies with his business Buchanan Success Coaching.
''He is grateful to NZC for giving him a chance to be its director of cricket, and to work with many outstanding individuals within the organisation.
NZC respects John's decision to return home and we wish him well for his future endeavours.''
White said there would be no further comment from he or Buchanan.
Last week NZC chairman Chris Moller announced he would not be seeking re-election to the board in September.
Board members Bill Francis, Sir John Hansen, and Therese Walsh also indicated they would not be standing.
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