Widespread speculation had suggested the 55-year-old's time was up after a meeting with chairman Peter Coates on Tuesday morning. However, it took the Potters several hours to finalise the details of his departure, with confirmation finally coming at shortly before 9.30pm on Tuesday night.
In a brief statement, the Barclays Premier League club said: "Stoke City and Tony Pulis confirm that they have mutually agreed that Tony will leave the Club with immediate effect."
Pulis, who following the retirement of Sir Alex Ferguson and David Moyes' move into the Manchester United hotseat was the second-longest serving manager in the country, leaves Stoke in a far better position than he found them. Within two years of taking over for his second spell in charge in 2006 he won promotion to the Premier League, where they have never finished below 14th.
He also led them to their first FA Cup final and consequently into the Europa League, but a poor run in the second half of this season - during which the Potters won just three of their last 19 league matches and briefly diced with relegation - saw them finish with their lowest Premier League points tally.
Pulis' style of football was also singled out for criticism, with his critics saying his sides were over-physical and too reliant on the long ball. That criticism began to spread to fans, many of whom became disenchanted amid the club's poor end to the season.
Many started to question Pulis' future and although that has now been resolved, winger Matt Etherington has warned supporters to be careful what they wish for.
"I've spoken to a few of the other boys and they're shocked as well, it's hit us," he said of Pulis' dismissal on talkSPORT. "You have to be careful what you wish for in football sometimes. You look at Charlton under Alan Curbishley and look where they are now.
"Hopefully it won't go that way for us, hopefully we'll get someone in who will push us on and make us into a top-10 team. If you look at where Stoke were when he first came in - mid-table in the Championship - you can't argue he's done a fantastic job."
Outgoing Chelsea boss Rafael Benitez is the early bookmakers' favourite for the job, having overtaken the man he succeeded at Stamford Bridge, Roberto Di Matteo, in the running.
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