Fisher signed a two-year contract with the province, following four years as head coach at the Canberra-based Brumbies Super Rugby franchise.
At the time of his appointment, Munster CEO Garrett Fitzgerald spoke of the need to appoint a forwards coach 'with experience at the highest level', identifying Fisher's knowledge of the ELVs (Experimental Law Variations) as a bonus at a time of change in the Munster coaching structure.
The contract term was subsequently extended to a third season, but by mutual consent the option of a fourth season has not been considered by either party.
During his time here, Munster have won the Magners League title, contested two Heineken Cup semi-finals and one Magners League semi-final.
They currently lead the Magners League by nine points and continue their European campaign with an Amlin Challenge quarter-final in April.
Fisher said: "I have thoroughly enjoyed my time at Munster. To be involved in a club with such history, tradition and passion has been a wonderful experience.
"I've had the pleasure to work with some of the world's best players and others who will be in the future.
"I'm disappointed to have not achieved the holy grail of Heineken Cup success, but there is still a European challenge there for us this season and the Magners League is very much in our sights.
"I will follow Munster's progress in the future as a new generation of players emerges, and will long carry the memory of the unique atmosphere that is a full house at Thomond Park Stadium."
Fitzgerald was fulsome in his praise of the genial Australian, saying: "We are indebted to Laurie for the work he put in for Munster Rugby over the past three years.
"He arrived at a time of transition in both personnel and playing terms and his experience as a head coach fully complemented what was at that time a young management team.
"His work ethic, application and professionalism was exemplary, and an example to anyone who aspires to a career in international club coaching. He will leave Munster at the end of his tenure with our gratitude and very best wishes."
Munster expect to name Fisher's successor shortly.