Wayne Shaw has agreed to leave Sutton Utd after investigations were opened into his pie eating during the club's game against Arsenal.
The 20st reserve goalkeeper - known by fans as Roly Poly Goalie because of his weight and his mid-match snacks - knew Sun Bets were offering 8-1 odds on him eating the pastry when he did so on camera.
That has prompted the Gambling Commission and the Football Association to look into whether he breached betting rules.
Amid a "storm of criticism" of the club, Sutton United manager Paul Doswell told Sky News he had no option but to ask Shaw, 46, to stand aside.
Doswell said: "It's been very disappointing. There's no doubt about that. I woke up this morning to this storm of criticism.
"Wayne, himself, has offered his resignation to the chairman this afternoon and it's been accepted. It's a very sad end to what has been a good story."
Asked by Sky's Kay Burley whether he had asked Shaw to quit, Doswell said: "Yes."
Doswell said: "The club were very disappointed in the way that we have been portrayed. We were very concerned with the implications at the club.
"It's clear in FA rules you are not allowed to bet and whether it was a fun bet, or whatever it was, it wasn't acceptable."
He added he expects investigations by the FA and the Gambling Commission to continue but the club management have to distance themselves from what happened.
He said: "It was an honest error but one that has had quite sad ramifications. I think Wayne has been swept along with what's happened in these last three or four weeks.
"I think he's been ill advised at times. He's such a lovely man but his judgement was not great last night and I think he's going to pay the price for it.
"He's absolutely devastated. Tears down the phone this afternoon. There's no joy or something good coming out of this particular situation for him."
Shaw earlier told BBC Radio 4: "We are told we are not allowed to gamble as it is full-time professional football.
"In no way did I put anyone in jeopardy of that - this is not the case here, this is just a bit of fun and me being hungry."
The resignation will mark a sad end to what was a remarkable run for the non-league south London club.
Sutton United reached the fifth round of the world's oldest football knockout and, in those five rounds, netted an estimated £1m.
Sky's Paul Kelso said: "Wayne Shaw, having gone to the kitchens to get a pie that had been specially prepared, wolfed it down live on camera.
"Unfortunately for him, this raised questions.
"If you are involved in football in any way, you are not allowed to bet on any matter relating to football.
"The FA will have to look at whether eating a pie counts as a matter relating to football.
"The more serious issue in terms of the investigations is the Gambling Commission, which is going to look into the conduct of Sun Bet."
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