They were beaten 5-1 at home to Belper Town to start 2019, trailing 4-0 at half time.
He will remain on the board of the club to help drive fundraising, which they hope will aid the next manager in his budget.
A club statement said: “Speaking after the game he was deeply disappointed in the manner of the humiliating defeat which takes Gresley perilously close to the relegation dog fight, calling it men against boys and it was easy to see how he came to that conclusion.”
Carl Slater and John Williamson will be caretaker managers until a new manager is appointed.
Applications are invited for the role of First Team Manager. Anyone interested should include their CV. All applications to ian.collins@gresleyfc.com. Closing date is Friday 11th January.
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