By SABC Sport
19th February 2024
A Palace statement also confirmed the 76-year-old, who was hospitalised after falling ill during a training session on Thursday, was "out of hospital and doing well".
Hodgson's right-hand man Ray Lewington and assistant manager Paddy McCarthy will lead the team on Monday at Goodison Park, with strong suggestions ex-Eintracht Frankfurt boss Oliver Glasner will imminently take over the struggling south London side.
Hodgson, in a statement released by the club, said: "This club is very special and means so much to me and has played a big part in my footballing life. I have fully enjoyed my time here across six seasons, as it has given me the chance to work with top class players and staff doing what I love every day."
The statement added: "However, I understand, given recent circumstances, it may be prudent at this time for the club to plan ahead, and therefore I have taken the decision to step aside so that the club can bring forward their plans for a new manager, as intended for this summer.
"I would like to thank Steve Parish and his American partners for their support, along with my coaching staff and backroom team who have helped me so much along the way.
"In particular, a huge thank you to my long-term friend and assistant, Ray Lewington; coaches Dean Kiely and Paddy McCarthy; plus the excellent sports science, video analysis and medical departments.
"My thanks and respect also to the current squad of players who have been a pleasure to work with - they are a credit to the club and themselves.
"I am certain that our fans will continue to give their full support to the team for the remainder of this season and beyond.
"I am confident that the season will finish well and I wish the team every success in the weeks, months and seasons to come."
Glasner, a Europa League winner with Eintracht Frankfurt in 2022, was spotted at upcoming opponents Tottenham on Saturday and several reports have suggested the 49-year-old Austrian has already met with Palace chairman Steve Parish and agreed terms.
Parish said: "Roy has a special place in Crystal Palace history and this will never be forgotten. After four years in which he led the club to maintaining Premier League status season after season, he once again joined us nearly a year ago to steady the ship, and worked wonders.
"That he then agreed to continue in the summer speaks volumes about his commitment to our club. Quite simply, we owe our continued Premier League status to Roy.
"I would like to thank Roy enormously for his service and wish him the very best for the future; its fair to say Roy has the keys to Selhurst Park and will always be welcomed back.
"On a personal note I would also like to thank Roy for his support, his professionalism and his friendship. He's been the manager for half of the time weve been in the Premier League, I've enjoyed working with him and learning from him immensely."
Palace's statement thanked Hodgson for his "outstanding service" across six seasons and 200 matches in charge, having hit the double-century milestone in their 3-1 loss to Chelsea before his health scare.
It was another disappointing loss for Hodgson, who called his boyhood clubs slump the "toughest period of my career" due to increasing revolt from the fans, who had in recent encounters raised banners protesting against the direction of the club.
Hodgson's deputies will inherit the injury crisis that has deprived Hodgson of some of the side's most influential talent all season, with Michael Olise (hamstring), Eberechi Eze (hamstring) and Marc Guehi (knee) set to miss what could prove an all-important encounter for Palace's survival ambitions.
McCarthy and Lewington also oversaw the Eagles' 3-1 loss to Aston Villa in September after the 76-year-old fell ill the morning of that match and went for a series of hospital tests.