“I’m fed up, I’m leaving,” Stoichkov told local media. “I agreed to start coaching without a contract and I had a great desire to help.
“I had the support of the players and my staff. We endured until it became clear there’s no chance of promises being fulfilled.”
Stoycho Mladenov, who last led the club to the title, will take over as coach, with a takeover imminent at the club.
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Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.
Newcastle United are staring down the barrel of relegation to the Championship for the second time in the past eight years.