Ince began his managerial career with Macclesfield Town in 2006
Paul Ince has resigned as MK Dons manager and will stand down from the role at the end of the season.
Ince said a reduction in funds for next season was the reason behind his decision to leave.
He told the club website: "I don't feel it will be possible to take the team forward as I would have liked due to the budget cutbacks."
The 42-year-old will begin a five-game touchline ban for improper conduct when the Dons face Wycombe on Saturday.
Chairman Pete Winkelman said: "Having increased our investment in the first-team squad this season to capitalise on the momentum Paul himself helped to create, we have felt it necessary to apply some reasonable prudence to next year's budgets.
"Regrettably Paul has made it clear that this decision would make it difficult for him to take the club forward as he had intended and has therefore decided to step down as manager. This was entirely his decision."
Ince received the five-game ban from the Football Association following an incident against Gillingham on 27 March when he was asked to leave the technical area.
An independent regulatory commission also imposed a £5,000 fine.
The former England international first joined MK Dons in 2007 and led them to the League Two title and Johnstone's Paint Trophy final.
Ince left in summer 2008 to take over as Blackburn boss but was sacked after just six months in charge.
He returned to replace West Bromwich Albion-bound Di Matteo in July last year.
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