Meanwhile, First Team Coach Mike Phelan is to take charge of team matters until the new manager is confirmed.
Former Canary winger and successful youth team coach Adams will take a break from the game before returning to work for the Club in July, in a role to be confirmed at a later date.
Adams was appointed to the first team manager’s position on a full-time basis in May 2014 after a brief five-game spell as caretaker at the end of the 2013-14 Barclays Premier League campaign.
Following the Sky Bet Championship defeat at Reading on December 28, the Canaries currently sit seventh in the league table. After Saturday’s FA Cup Third Round exit at the hands of Preston North End, Adams met for discussions with the Board and agreed to resign.
Adams commented: “I firmly believe that we are still on course for a crack at promotion back to the Premier League. That is where this club belongs.
“However, I feel it is in the best interests of the team that an immediate change is made in order to ensure a positive impact on results.
“It goes without saying that I sincerely hope the team achieves success this season and I would like to say a huge thank you to the supporters who have backed me during my tenure as manager.”
The issue that Norwich fans might not appreciate is that Adam's resignation means that half the Championship teams have now changed manager since the season started and we still have five months left to go.
No doubt Adams won't be the last this season and being a Championship manager these days is akin to being an endangered species - Stuart Pearce at Nottingham Forest is under severe pressure and the likes of Steve McCalrren at Derby are being linked to Premier League sides.
We could see a situation where only six or seven managers remain in post come seasons end.