A club statement on Monday afternoon said: "Aston Villa can confirm that Martin O'Neill has resigned as manager of the football club with immediate effect."
O'Neill has resigned only five days before the start of the new Barclays Premier League campaign.
Villa owner Randy Lerner insisted O'Neill had pledged his future to Villa in May after much speculation over whether or not the former Celtic boss would quit.
But O'Neill has now decided to end his reign with reserve team manager Kevin MacDonald taking charge of Saturday's opener with West Ham.
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