The former Chippa United coach, who has been with both Royal Eagles and Real Kings, was released on Thursday just a few hours after conducting a Nedbank Cup media briefing at Moses Mabhida Stadium.
It was believed the club spoke with the coach after their 1-1 draw with their biggest rivals Eagles in the NFD last Saturday and the talks were still ongoing.
The issue dragged on even until Thursday when the coach was addressing the media for Saturday's Nedbank Cup clash against Passion FC.
Kings general manager James Dlamini says Masutha resigned as he felt he could not succeed to help the club get promotion.
"Yes, the coach has been released. We had a mutual agreement as he felt the pressure is too much," Dlamini tells snl24.com/kickoff.
Mike Lukhubeni has taken over at Kings after resigning at Steenberg United.