Having steered Stoke to the Premier League in 2008, two years after returning for a second spell at the helm, Pulis has kept them safe amongst the elite and took them to the FA Cup final in 2010/11 when they lost to Manchester City.
However, Stoke's abrasive style of football and this season's disappointing results which saw them finish 13th led to some disgruntlement from the fans.
"Stoke City and Tony Pulis confirm that they have mutually agreed that Tony will leave the club with immediate effect," Stoke said on their website.
Welshman Pulis, 55, had three years as manager of Stoke from 2002-05 before a short spell at Plymouth Argyle but returned in 2006 and two years later restored their place among England's elite after a 23-year absence.
Favourites to go straight back down, Stoke finished 12th in their first season back in the top flight and have avoided any serious flirtations with relegation since although this season's 42 points was their lowest total since promotion.
Pulis's exit continues the managerial merry-go-round that has dominated the end of the English season after Sir Alex Ferguson stood down as Manchester United manager having given them 27 years service to be replaced by Everton's David Moyes.
