Pulis departed Selhurst Park on Friday, with a disagreement over the club's transfer policy reportedly the reason for a break down in relations between the 56-year-old and the Palace hierarchy.
Palace co-chairman Steve Parish said on Thursday that he was unsure over Pulis' future, and the former Stoke City boss' departure was announced following a meeting between the pair.
The news comes just a day before Palace open their new campaign at title-chasing Arsenal.
A club statement read: "Crystal Palace Football Club can confirm that Tony Pulis has left the club by mutual consent with immediate effect.
"Keith Millen will be in temporary charge of the team for our opening Barclays Premier League game against Arsenal this Saturday.
"The club would like to thank Tony for his efforts with the club during last season and wish him all the best for the future."
Palace have been quiet in the transfer window, only spending money to sign defender Martin Kelly from Liverpool the day before Pulis' departure and Fraizer Campbell from Cardiff City.
Defender Brede Hangeland and goalkeeper Chris Kettings have also joined on free transfers but Palace have been left in the wake of their Premier League rivals, who have splashed the cash in the close-season.
Pulis did a remarkable job to reverse Palace's fortunes after being appointed as Ian Holloway's replacement in November last year.
The London club were stuck in the drop zone at that point and likely to be relegated, having accrued just four points from 11 games, but the arrival of Pulis saw a sharp upturn in their form.
They finished comfortably safe, 12 points above the bottom three in 11th - a performance that saw Pulis win the Premier League Manager of the Year award.
Pulis, who spent two spells in charge at Stoke between 2002-2005 and 2006-2013, is now sure to attract the attention of other clubs, while Malky Mackay and David Moyes are among the favourites to replace him at Selhurst Park.
