The 47-year-old had a contract at Signal Iduna Park that ran until 2018, but has been permitted to terminate his deal early.
Klopp stated that the decision was taken because he no longer felt he was the best coach for Dortmund.
"We've both invested a lot and got a lot back. No-one needs to be thankful," he said.
"I've said over the last few years that when I'm no longer in the best place to coach, I will say so.
"I chose this time to announce it because in the last years some player decisions were made late and you couldn't react.
"I definitely believe this to be completely the right decision. This club deserves a manager who is 100 per cent right for the club, and that's why I made the decision."
Klopp refuted early reports that he is planning to take a sabbatical from the game and is desperate to finish his stint with a trophy in the form of the DFB-Pokal.
"This has nothing to do with me being tired," he added. "I read that this morning. I have not planned a sabbatical.
"My last wish is to finish the season in the highest possible position and that we can have an open-top parade with the cup."
Klopp, who joined from Mainz in 2008, is a popular figure at Dortmund having led the team to back-to-back league titles as well as completing a Bundesliga and DFB-Pokal double in 2012.
Dortmund also made the final of the UEFA Champions League under Klopp's stewardship in the 2012-13 season, but they were beaten by rivals Bayern Munich.
However, Dortmund have endured a hugely disappointing season in 2014-15 and sit 10th in the table after 28 games.
The club were bottom of the table by the mid-season break, but an upturn in form in 2015 has at least alleviated the threat of relegation.
Get the best features, fun and footballing frolics straight to your inbox every week.
Thank you for signing up to Four Four Two. You will receive a verification email shortly.
There was a problem. Please refresh the page and try again.