The 42-year-old was unable to keep the Cherries in the Premier League with relegation confirmed on the final day despite a 3-1 win at Everton.
Howe is leaving Bournemouth after more than 450 games in charge over two periods at Vitality Stadium and admitted the time was right for a change in an open letter to supporters.
Relegation could bring new freedom to Bournemouth
Il a lu: “After spending a total of 25 years with the club as a player and manager, this decision – taken with the club – is one of the most difficult I have ever had to make.
“However, while the affection and love I have for this football club will always remain, we collectively believe that the time has come for the club to move in a new direction.
“Bournemouth will always be in my heart, but I firmly believe the time has come for the club to change. ”
The former defender initially took over the South Coast club in December 2008 on an interim basis with Bournemouth at the bottom of League Two.
After leading them to safety, he secured promotion to the next campaign before leaving to join Burnley in 2011.
Howe returned a year later and guided the Cherries to two more promotions, with the club playing in the Premier League for the first time in their history.
General manager Neill Blake said: “Eddie Howe is synonymous with this football club, both as a player and as a manager, and that will never change.
“He is quite simply an AFC Bournemouth legend, having helped transform the club’s identity and history. ”
Howe made more than 300 appearances as a Bournemouth player over two spells before being forced to retire in 2007.
Cherries General Manager Blake added, “Myself, our owner Maxim Demin and the gratitude and appreciation of the Board of Directors for Eddie’s accomplishments cannot and will never be underestimated.
“A decision like this cannot be taken lightly, which is why it has been discussed at length together in recent days. It’s even more difficult given our close personal friendship.
“We wish Eddie the best of luck with all the future holds and hope he has some well-deserved and well-deserved time with his family.
In his open letter, Howe praised the fans and also revealed that he will take “time” to spend with his family.
“You have helped the club survive their darkest hours and deserve every success,” said the 42-year-old.
“I now join you as a Bournemouth fan and will be ready to take the club forward in what I am sure will be a successful future.
“I will now be taking some time over the summer vacation to spend some quality time with my family and can’t wait to move on to the next chapter in my life.”
Bournemouth defender Steve Cook paid tribute to Howe on Twitter for making a childhood dream come true.
“I can’t really put into words the emotions of the past week,” he says. “Now tonight adds to the ‘end of an era’.
“I can’t quite put it into words, but I can only thank the manager. He gave me the chance to play in the Premier League, which every boy dreams of.
“I had an amazing eight years playing under him and something I couldn’t imagine changing.
“Two promotions, a championship winner’s medal and five years in the best league in the world. Thanks for the memories. “