Chavez and Pitbull, real name Armando Perez, have worked together since 2007, reported Billboard magazine.
"The split was amicable," a source said.
The rapper is currently on tour in China and has not announced future management plans.
Pitbull's recently wrapped co-headlining tour with Enrique Iglesias was a frequent sellout, with tickets for two North American legs totaling USD 39 million in Billboard BoxScore receipts from 36 performances.
Chavez, on his end, remains CEO of Latium Entertainment, which in February entered into a formal venture with Sony Music International with distribution from RCA Records.