Gloucester chairman Tom Walkinshaw said: "On behalf of everyone at the Club and the supporters I would like to thank Nigel for his work at Gloucester Rugby Club, and wish him all the best for the future.
"He was part of this club on one of our most memorable days, when we won the Powergen Cup at Twickenham, and I know that moment will be an ever-lasting memory for everyone."
Melville took over from Philippe Saint Andre at the Kingsholm club in the Spring of 2002, and saw his Gloucester side defeat Bristol Shoguns in that season's Zurich Championship final.
The West Country club recruited Dean Ryan as coach to join Melville in the summer of 2002, and Gloucester went on to finish top of the table during the regular Zurich Premiership season at the end of 2003 and win the Powergen Cup, before losing the Zurich Premiership final to Wasps at Twickenham.
Gloucester have finished fourth and sixth respectively in the last two seasons, and last weekend missed out on next season's Heineken Cup after losing to Saracens in the Zurich Wild Card final.
Nigel Melville said: "I'd like to thank everyone from the players, to the staff at the club and the supporters for their time and support over the last few seasons. Gloucester is a special club and there's been some great times since I arrived. I wish everyone all the best."
The Gloucester players are currently on their summer break, with pre-season activities due to start at the end of June. Team affairs will be managed by coach Dean Ryan in an interim capacity.
Gloucester's board of directors will not be making any further comment at the current time, and will take the next few weeks to consider the playing structure at the Club.
Everyone at Gloucester Rugby Club would like to wish Nigel Melville all the best for the future.
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