Pochettino joined Chelsea ahead of the 2023/24 campaign when he replaced interim manager Frank Lampard as the club's new owners Todd Boehly and Clearlake Capital looked to freshen things up after a 12th-placed finish the previous season.
He signed a two-year contract, with the club having the option of a further year, but the 52-year-old has now left the west London side after a turbulent campaign despite a late rally to finish sixth and secure European football for next season.
"On behalf of everyone at Chelsea, we would like to express our gratitude to Mauricio for his service this season," sporting directors Laurence Stewart and Paul Winstanley said in a statement.
"He will be welcome back to Stamford Bridge any time and we wish him all the very best in his future coaching career."
Former Paris St-Germain and Tottenham Hotspur manager Pochettino came in after Chelsea had splashed out more than any club in Europe in the close season transfer window last year, spending 400 million pounds on signings.
Boehly and Clearlake had spent over one billion dollars on players since they took over the club in 2022, with most of the outlay going into young players signing long-term contracts as they looked to build a team for the future.
Third manager of ownership
Pochettino was Chelsea's third permanent manager under the new ownership after Thomas Tuchel and Graham Potter and the players took time to gel as the club struggled to establish a run in the early months, sitting 12th at one stage.
But Pochettino turned things around as players returned from injury and they lost one of their last 15 games, winning the last five in a row to soar to sixth spot and qualify for Europe.
Chelsea have qualified for the Conference League but will play in the Europa League if Premier League champions Manchester City win the FA Cup final against Manchester United on Saturday.
Speculation had been rife that Pochettino would be gone after one year in charge but he remained tight-lipped about his future when asked after their final game of the season on Sunday.
The Argentine remained mum on 'rumours' of his exit but said on Sunday that he had had dinner with Boehly.
"Thank you to the Chelsea ownership group and sporting directors for the opportunity to be part of this football club's history," Pochettino said on Tuesday.
"The club is now well positioned to keep moving forward in the Premier League and Europe in the years to come."