Peter Taylor is to part company with City by mutual consent after Saturday's home game with Stockport.
The Bantams boss will remain in charge for the crucial relegation clash before stepping down.
Taylor said: "I had a meeting with Julian Rhodes yesterday and I made the decision that this is my last game.
"We had a tremendous chat and I'm really impressed with Julian and Mark Lawn. They've been very supportive.
"But the crowd's reaction on Tuesday just made up my mind that it was the best time to go for everybody's sake. Bradford City is more important than any individual."
Lawn said: "Everybody would have chosen Peter Taylor out of the candidates that were there because of his CV. The simple fact is that unfortunately it just hasn't worked."
For much more on this story and discussion of its implications for City see Friday's Telegraph & Argus