Bennett, 43, who spent five years as Huddersfield goalkeeper, was appointed coach in the summer of 2014 after he retired as a player.
“The five years I have spent at Huddersfield Town as a player, and more recently a coach, have been brilliant,” Bennett told the club’s official website.
“I have had the pleasure of working with a fantastic set of people and the friendships formed over the years have made this a very difficult decision.
“I would like to wish Huddersfield Town every success and thank everyone at the Club for their support over the years.”
Bennett made a total of 74 appearances for Huddersfield and had previous spells at Peterborough, Birmingham, Leeds and Sheffield United.