Former Everton and Manchester United boss Moyes resigned overnight, Australian time, following his side’s relegation from the Premier League.
Moyes held the position for less than a year but oversaw a dismal campaign in which the Black Cats finished bottom with just six wins from 38 games and 16 points adrift of safety.
The Scot, 54, made the decision to leave following a meeting with chairman Ellis Short and chief executive Martin Bain and opted to do so without a pay-off.
A statement from Short read: “I pursued the services of David Moyes for a considerable period prior to his appointment last summer, which makes the announcement of his departure difficult for everyone concerned.”
“Having worked tirelessly throughout the campaign to avoid relegation from the Premier League, David has chosen to leave the club without compensation, which is testament to his character.
“In the days ahead we will take some time for reflection, and then focus on recruitment and pre-season as we prepare for our Championship campaign. We wish David well in the future.”
Moyes built his reputation during an 11-year tenure at Everton but failed spells at United and Real Sociedad left him needing to revive his career.
He took over from Sam Allardyce at the Stadium of Light in the hope of building on last season’s escape from relegation but the team regressed badly.
Their demotion to the Championship was confirmed five games before the end of the season.
There was also controversy during his time at the club and he was charged by the Football Association after telling BBC reporter Vicki Sparks that she might “get a slap” over her line of questioning during interviews.
After his impressively long stint at Everton, Moyes has now left four jobs in as many years.
Moyes said: “I would like to thank Ellis Short and the board for giving me the opportunity to manage Sunderland and the fans for always being so passionately supportive of their club.
“I wish the players and my successor well in their efforts towards promotion back to the Premier League.”
His predecessor Allardyce feels Moyes has nothing to be ashamed of but should think carefully about his next move.
“Today moving away from one football club is no disgrace any more, it happens so often. Whether you deserve it or don’t, it just happens,” Allardyce told Sky Sports News .
Former England manager Roy Hodgson expects Moyes to return soon enough.
Hodgson said: “David is an excellent manager. I’m very sad for him and very sad for the club but David will certainly bounce back because managers and coaches of his quality do not grow on trees.”
Help our journalists uncover the facts
In times like these InDaily provides valuable, local independent journalism in South Australia. As a news organisation it offers an alternative to The Advertiser, a different voice and a closer look at what is happening in our city and state for free. Any contribution to help fund our work is appreciated. Please click below to donate to InDaily.