Reports suggest that the Dutch coach, brought in by sacked Avram Grant to bring attacking football to the club, has left Stamford Bridge.
Ten Cate had a meeting yesterday with chief executive Peter Kenyon and it became clear a parting of the ways was the only solution for the club.
He was under contract for another two years.
The future of coach Steve Clarke will become clear as it's believed he has a meeting with Kenyon tomorrow.
Chelsea are trying to clear the mangement playing decks for the appointment of their new manager.
There had being suggestions in certain sections of the media that Clarke was looking for a manager's job - perhaps in the Championship.
Many Chelsea fans will be hoping that Clarke's services will be retained and he will provide the much-needed stability if the new boss comes from outside the UK.