Warnock said in a press conference: “Kevin McCabe and I sat down together on Monday because I had come to the decision that it was time for me to leave Sheffield United.
“I have been at the club for seven-and-a-half years and if anyone could turn the clock back to where we were then and how we are now, it is fair to say that we have come a long, long way.
“In my opinion we have moved mountains – on and off the pitch – and have put the pride back into being a Blade.”
United plc chairman Kevin McCabe said: “This is a mutual decision in some respects prompted by the events of the last couple of days.
“Both Neil and I believe it is for the good of the club. Neil departs with our best wishes.”