Vidmar has stepped down after four years in the role, following Australia's quarter-final exit at the U23 Asian Cup.
Football Australia confirmed Socceroos great Vidmar's departure on Friday, without naming a replacement.
"Tony Vidmar's contribution to Australian football has been immense, and his impact as a coach over the past seven years should be celebrated," interim chief executive Heather Garriock said in a statement.
"We thank Tony for his tireless dedication and wish him the best in his next coaching chapter.
"The Olyroos coaching role is a coveted position.
"With no immediate matches scheduled for the under 23s, we will take this opportunity to review the program's future requirements to ensure we continue providing a strong, high-performance pathway into the Socceroos."
Australia lost to South Korea in the quarter-finals of January's U23 Asian Cup.
Vidmar, who was a member of former Socceroos coach Graham Arnold's staff, including during the brilliant 2022 World Cup campaign, spent seven years at Football Australia, taking on the Olyroos role in 2022.
He had remained at his post despite Australia's failure to qualify for the Paris Olympics in 2024.
Australia did not make it past the group stage at the 2024 U23 Asian Cup, which doubled as Olympic qualifiers, failing to score in a loss to Indonesia and draws with Qatar and Jordan.
The performance was the Olyroos' worst in any Olympic qualification tournament since the under-23 age restriction was introduced in 1992.
Controversy also flared when Nestory Irankunda was left out of the squad.
Vidmar took pride in the players, including Jordy Bos, Lewis Miller and Nishan Velupillay, who had gone from Olyroos under his watch to Socceroos regulars.
"Seven years I've been involved with the national teams, I'm really proud and privileged to have been in those roles," Vidmar said.
"It has been an incredible honour to lead the Olyroos and contribute to the evolution of the next generation of Australian talent.
"You aim to close the gap for the younger players to go through and become Socceroos.
"A number of players have transitioned from under 23 to the Socceroos, including Joe Gauci, Lewis Miller, Jordan Bos, Kusini Yengi, Kai Trewin, Josh Nisbet, Patrick Yazbek, Patrick Beach, Ryan Teague, Nishan Velupillay, Jacob Italiano, and Paul Okon-Engstler."
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