MailOnline revealed in March that Pulis had grown increasingly disillusioned with the job and would consider his options at the end of the season.
He has continued to plan for the new campaign, and went on a scouting mission to Spain last week to see Real Sociedad play Granada. But the 55-year-old Welshman is understood to have decided he has taken the club as far as he can seven years into his second stint in the Potteries.
Gone: Pulis was Stoke manager for seven years in his second spell
Final game? Peter Crouch scored as Stoke drew 1-1 at Southampton at the weekend
WE TOLD YOU IN MARCH
Chris Wheeler wrote on March 19 that Tony Pulis was to leave Stoke
Pulis has already lost several key allies at the club and was known to be concerned at how much money would be pumped into the youth system instead of his transfer budget.
Coates, has always maintained a close relationship with Pulis, who had a spell with Stoke between 2002 and 2005 before returning in 2006 wants to focus on bringing through more homegrown talent.
Pulis was the second-longest-serving manager in the Premier League following Sir Alex Ferguson’s retirement and David Moyes’s move to Manchester United.
He was instrumental in guiding Stoke into the Premier League in 2008, as well as to the 2011 FA Cup final and a place in Europe for the first time in nearly 40 years.
But he came under fire from angry fans during a disappointing season - they won just three of their final 21 Premier League games - and refused to offer any guarantees that he would stay on next term.
Management material: Neville (right) will coach the England Under 21s this summer
‘Nobody gives you a pat on the back for taking a club that was in the bottom half of the Championship to a club that hopefully has been in the Premier League for six years, played in a Cup final, played in Europe, and had an England international (Peter Crouch) for the first time in years.’
Former Stoke striker Michael Owen tweeted: 'Just heard that Tony Pulis has left Stoke. No denying he did a great job getting them to The Premier League and keeping them there.'
Pulis's departure could open the way for Phil Neville to take over after Sportsmail revealed the former England defender, who is considering retirement after being released by Everton, was wanted as first-team coach by the ambitious Potters.
Coates is overseeing a huge change in the technical set-up at the Britannia Stadium and wants Neville to help put his plans into practice before the start of next season.
Neville, who will assist England Under 21 coach Stuart Pearce this summer during the European Championship in Israel, is giving serious consideration to his future.
The former Manchester United, Everton and England defender and holding midfielder insisted on Sunday that he hadn’t decided whether to finish his playing career at the age of 36.
Delilah delight: Pulis celebrates the crushing 5-0 win over Bolton in the 2011 FA Cup semi-final
Neville is interested in a coaching role next season, but he is also waiting to discover whether Everton or United offer him one.
Whoever Pulis's replacement is, they will have to start by sorting out the pig's head incident from last week.
Kenwyne Jones and Glenn Whelan face an internal disciplinary hearing and were told to stay away from Stoke's draw at Southampton on Sunday.
Jones had found a pig's head wrapped in his clothes at the club's Clayton Wood training ground.
He reacted by smashing Whelan's car windscreen, mistakenly believing the midfielder had been responsible. Jones later apologised via Twitter.
Long stint: Pulis guided Stoke to the Premier League for the first time in 2008
Hamming it up: Brek Shea posted this image of him holding a pig's head in the Stoke changing room
'I've had a good chat with them. It was a prank and everybody knows that. I think it's been a week of the lads getting at it in lots of respects.
'We'll deal with it in house and then the club will let you know. I have to say the disappointing thing is some coverage has been poor. One newspaper said it was about religion.
'That had absolutely nothing to do with it whatsoever. You have to accept it and get on with it. I'll speak to Peter and the family and let you know. As soon as we've sorted it all out we'll let you know next week.'