The news comes as a major surprise with Wilkins playing a major role in the Stamford Bridge club's recent success.
Wilkins' contract was up for renewal but having not been offered fresh terms he
has left the Premier League champions and FA Cup holders with immediate effect.
Chelsea chief executive Ron Gourlay told the club's official website: "On behalf of everyone at the club I would like to thank Ray for everything he has done for Chelsea Football Club.
"We all wish him well for the future."
Wilkins, who started his playing career at Chelsea, was in his second stint as part of the coaching team at Stamford Bridge.
The 54-year-old was part of the backroom staff under Gianluca Vialli and after spells at Watford and Millwall he returned in September 2008 as assistant first team coach to Luiz Felipe Scolari.
Wilkins took caretaker charge of the side for one game against Watford after Scolari left the club in February 2009.
He assisted Guus Hiddink until the end of the 2008/09 season and stayed on in the role when Carlo Ancelotti arrived at Chelsea.
Wilkins played a key role in helping Ancelotti settle in at Stamford Bridge and he saw the club claim a Premier League and FA Cup double last season.
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