Bates, who bought a controlling interest in the club for £1 in 1982, sold the club last year to Russian billionaire Roman Abramovich for £17m.
The decision by Bates to step down follows a gradual phasing out of his influence at the London club since Abramovich’s arrival.
He was left fuming after his regular match day column in the club programme was scrapped, and saw any power he once had eroded by the arrival of Peter Kenyon as chief executive officer and Bruce Buck as chairman of Chelsea Village – the club’s parent company.
Said Bates at a fan meeting: “Certain things were agreed in July but they have not gone as planned.
"It is in the best interests of the club that Peter Kenyon runs Chelsea in his own style rather than me being on side.”
