Gatland, 61, is contracted until the 2027 World Cup but was expected to depart at the end of the Six Nations.
He is now set to leave during the tournament with three games remaining with Wales looking for an interim boss.
Gatland won four Six Nations titles with Wales during his first stint in charge between 2007 to 2019, in a period that also saw his side reach two World Cup semi-finals.
The Kiwi, who coached the British & Irish Lions during their 2013, 2017 and 2021 tours, returned to the role when he replaced Wayne Pivac in December 2022.
However, he was unable to have a positive impact on the side, with Gatland overseeing just six victories and 20 defeats across 26 Tests, while Wales have also slumped to 12th in the world rankings in the process.
Pressure had been growing on Gatland after Wales suffered a record string of defeats including a disappointing autumn international series which saw a loss to Fiji at home in Cardiff for the first time.
Gatland’s side were also awarded the wooden spoon in last year’s Six Nations championship for the first time since 2003, and are yet to win a game at this year’s tournament. A humbling defeat in Paris against France and Saturday’s reverse in Rome against Italy proving the final nails in the coffin for the Kiwi.
Wales face Ireland next on 22 February in Cardiff, then travel to Scotland on 8 March before finishing the Six Nations tournament at home against England on 15 March.
Former Australia coach Michael Cheika, Glasgow coach Franco Smith and Ireland interim boss Simon Easterby have all been mooted as potential long-term successors.
In a statement, Gatland said on his departure:
“I would like to thank the WRU board for the faith shown in me after a tough campaign throughout 2024 and affording me the time and resource to try to turn things around for this 2025 tournament.
“We have worked hard, we have a talented young squad that is developing and have been desperate to turn potential into results but now is the right time for a change.
“I’ve reached the end of this particular chapter, but remain grateful to all those in Wales who have supported me, the players who have played for me and all those around me, especially my management team, who have contributed to what we have achieved over the years.
“Finally, I want to say a big thank you to the Welsh fans.”
[Lead image: Welsh Rugby Union]
