Various outlets , including the Times, The Daily Mail and the Daily Telegraph have confirmed Pulis has left after showdown talks with co-chairman Steve Parish.
Pulis is believed to have been unhappy with the transfer funds that were allocated to him this summer.
Pulis started the day as a 40/1 outsider to be the first Premier League manager to lose his job but doubts about his future emerged early Thursday evening after money flooded in on him to leave, forcing bookmakers to suspend the betting.
Pulis won the LMA's Premier League Manager of the Year award last season for an impressive six months in charge in which he replaced Ian Holloway mid-season and pulled the club out of relegation danger.
Under Welshman Pulis' watch, Palace went from strength to strength, finishing 11th after a five-match winning streak - with only one loss in their last eight games.
However, Pulis wanted to sign both Steven Caulker and Gylfi Sigurdsson this summer but the players instead went to QPR and Swansea respectively.
Martin Kelly became the club's second paid transfer of the summer on Thursday, after Fraizer Campbell but that was clearly not enough to satisfy Pulis.
Palace kick off their Premier League campaign against Arsenal on Saturday evening and Keith Millen will take charge of the team for that contest.
William Hill made David Moyes the 5/1 joint favourite with Neil Lennon to take over but money then came in for former Cardiff City manager Malkey Mackay and he was the 2/1 favourite late on Thursday night.
- Sports & Recreation
- Premier League