The German had been well backed in the sack race market on Sunday, but the decision certainly seems to have been extremely amicable after what has been an incredible few years for the club under Wagner’s stewardship.
Chairman Dean Hoyle explained: "As I have said previously, I had no intention of sacking David this season. Subsequently, David - being the great man he is - came to us and made it clear that he needs a break from the rigours of football management."
Despite surviving their first campaign in the Premier League, the Terriers were always expected to struggle and their position at the foot of the table is no surprise based on the pre-season relegation market.
Mark Hudson has been handed the reins and leads the market to be Huddersfield's next manager at 11/8 (2.38) with William Hill. The 36-year-old has been part of Wagner's coaching staff since retiring in 2017, having spent three years as a player at the John Smith's Stadium.
Hudson had originally been available at 8/1 (9.0) for the full-time role so while he wasn't one of the leading contenders, the interim boss certainly wasn't considered as a longshot either.
Bettors looking to get involved in next manager markets should also keep in mind that most firms will consider any candidate who takes charge of 10 games to be a permanent appointment and settle wagers accordingly.
At 1/20 (1.05) for relegation William Hill certainly believe whoever comes into the role will have an almost impossible job to save Huddersfield from the drop.
They are eight points from safety and face Manchester City, Everton, Chelsea and Arsenal in their next four matches. With that in mind, an appointment who could also plan for a likely Championship campaign could be a wise choice.
Carlos Carvalhal is an 8/1 (9.0) chance having taken over at Swansea when they were in a perilous position although the Portuguese left the club after just six months in charge when the Swans' relegation was confirmed.
Slavisa Jokanovic (12/1) left Fulham earlier this season although his experience guiding both the Cottagers and Watford into the top-flight could make the 50-year-old an interesting choice for this role.