BBC’s website reports that Pulis held talks with Stoke’s chairperson, Peter Coates on Tuesday.
Pulis's future has been in doubt for some time and he has been told the club feel the time is right to part ways after seven years in charge.
Recently retired Stoke player Michael Owen also confirmed the news via Twitter.
"(sic)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," Owen tweeted.
Pulis rejoined the club for a second spell in 2006 and guided them to promotion in 2008 before reaching the FA Cup final in 2011.The 55-year-old was appointed Potters boss for a second time in 2006, and two years later he guided the club to the top flight after a 23-year absence.
The Welshman also went onto guide them to Europe and an FA Cup final.
Stoke finished 13th in 2012-13 to secure a sixth Premier League campaign, flirting with relegation for most of the season which drew harsh criticism from some sections of supporters over his side's style of play.
Coates repeatedly declined to comment on Pulis's future during the season, but after Tuesday morning's end-of-season debrief, he may have made the decision to let Pulis leave the club.
Sky Bet has already got ex-Chelsea boss Roberto Di Matteo as the favourite to succeed Pulis at the Brittannia, with ex-QPR manager Mark Hughes also in the mix as a contender.