Concern for the former Town boss' future has been growing ever since Brian Caldwell left the club, and the club announced they were creating a new football board without consulting him.
He was emotional after his side's final game of the League One season against Lincoln where he said he was 'uncertain' what his future looked like.
But now after more than a month of waiting the club have confirmed he has left his position as manager.
Cotterill arrived at Montgomery Waters Meadow in November 2020 with Salop looking destined for relegation with a bloated squad
Before long, the boss was struck down with the coronavirus and he spent 49 days bed-bound in Bristol Royal Infirmary.
After recovering from Covid, he took the reigns and guided Town to a 17th-placed finish - keeping them in League One.
The following season was a transitional one for Salop, and they ended up finishing 18th - but they have kicked on this campaign.
With good recruitment in the summer and smart loan signings, Cotterill has progressed this Town side during the latest campaign, and they finished 12th after a battling season.