The 55-year-old guided the club to a 15th-placed finish but a haul of 42 points was the club's lowest in the Premier League since their arrival in 2008
The 55-year-old met with the club's chairman Peter Coates on Tuesday to discuss the side's struggling Premier League campaign which saw them finish with a six-point cushion above the relegation places.
Stoke ended the season on 42 points, their lowest Premier League total since Pulis guided the club to promotion in 2008.
During his second stint in charge at the Britannia Stadium, Pulis led Stoke to an FA Cup final in 2011 and oversaw the club's Europa League campaign the following season where they exited the competition at the round-of-32 stage.
A section of Stoke fans had voiced their concerns over Pulis' tactics this season, drawing particular emphasis on the club's record away from home which consisted of just two league wins.
Pulis' departure was confirmed in a brief two-line statement on the club's official website, while no replacement has been announced.