Monaco have accepted coach Didier Deschamps' decision to resign.
Deschamps has been openly critical of Monaco's lack of investment
Deschamps, 36, handed in a letter of resignation on Monday after a 2-0 defeat by Stade Rennes left his team 15th out of 20 in France's Ligue 1.
"It's his choice and we have to respect it," said president Michael Pastor - before announcing that assistant coach Jean Petit will become caretaker boss.
Monaco have lost four of their first seven league games and failed to reach the Champions League group stage.
Deschamps is understood to have been unhappy at the lack of summer signings at the club.
The former Chelsea midfielder was carpeted by Monaco last week for criticising their lack of investment.
He took over the reins at Monaco in June 2001 and was seen as one of France's brightest coaches as he transformed the club.
In his second season he guided Monaco to second place in the French league and they finished third in both the following seasons behind larger-funded clubs.
He also took the club to the 2004 Champions League final, which Monaco lost to Porto.
Deschamps enjoyed a glittering playing career, which he began at Nantes before moving to Marseille and Bordeaux.
He returned to Marseille before joining Juventus in August 1994.
Deschamps reached three Champions League finals with Juve, winning the title once.
The player once derided as a "water carrier" by former French international Eric Cantona enjoyed his finest hours with his country.
He led France to the 1998 World Cup triumph on home soil and the European Championship two years later.
Deschamps joined Chelsea in June 1999 for £3m and spent one season at Stamford Bridge before winding down his playing career at Valencia.