Parada said Ko told him that she appreciated their time working together and that she wanted to get other advice ahead of the restart of the golfing season.
"I don't know exactly what the reasoning was. I know we ended up on very good terms."
Ko is set to tee off in the LPGA Drive On Championship event starting Friday.
NZME understands her new coach is now Sean Foley who has previously worked with Tiger Woods and Justin Rose.
Parada was the latest coach enlisted by the Kiwi to try and turn around a rough stretch of form that has seen her fall to 52nd in the world rankings – a far cry from her peak when she held the number one spot for 84 weeks.
Lydia Ko has worked with Gary Gilchrist, Ted Oh, Dave Whelan and Parada since sacking David Leadbetter in 2016.
Leadbetter, who has long been critical of the role that Ko's parents, Gil Hong and Tiny Hon, have played in their daughter's career, urged Ko last year to "leave the nest" and take control of her own career – even calling the situation "unbelievably ignorant".