The 63-year-old Portuguese with the Midas touch who led the hosts to the Africa Cup of Nations quarterfinals last month, cited personal reasons for his decision to cut short a one-year contract with the Black Antelopes.
The coach suffered a personal tragedy on the day Angola were beaten by eventual runners-up Ghana in the quarterfinals, when his father died back in Portugal.
Despite going out to Ghana, Jose won widespread approval for the way he transformed a struggling side, and captain Carlos ‘Kali’ Alonso said the players wanted him to carry on.
Angola drew with Mali after leading by four goals in their opening Nations Cup group fixture, and defeated Malawi and drew with Algeria.
Jose previously had two spells with Cairo club Al-Ahly, who won the CAF Champions League four times under his guidance and were runners-up once.