Since 2011, he has been the club's technical director, supporting the work of the first team management, leading the club's global and domestic scouting network and assisting in driving the technical programmes of the Academy and worldwide youth network.
He presided over the signings of key players such as Eden Hazard, Cesar Azpilicueta, Thibaut Courtois and N'Golo Kante, as well as a Chelsea academy that has emerged as a dominant force in English and European youth football.
However, while Chelsea are unlikely to exercise any sort of restraint on Emenalo's future employment, the 52-year-old is adamant that at present he has no job offers on the table.
Emenalo was heavily involved with the club's scouting department, and a largely barren summer saw them miss out on a number of Conte's first-choice signings.
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It is understood that Emenalo had become frustrated at being caught in the middle of a power struggle between Conte and the board.
Chelsea chairman Bruce Buck added: "Michael has had a tremendous impact on the club over the past 10 years and this is evident in everything we have achieved".
Emenalo: "This has been a very hard decision to make, but one I believe is right for both myself and my family, and the club".
The Nigerian was integral in identifying transfer targets, alongside Antonio Conte, and provide data on those targets before a final decision was made. "I need an opportunity to get to see my young kids grow and also to step back and reflect on the work that I have done here and the things that we have been able to accomplish together in this great club", he told Chelsea TV.