The 42-year-old, who recently guided the Hatters to round five of the FA Cup before they were knocked out by Millwall, took charge of the club in April last year.
However, a statement on the club's official website this afternoon has revealed that Buckle has decided to call time on his stint at Kenilworth Road.
"It is with much regret we announce, by mutual consent, and as a result of genuine personal circumstances unrelated to his tenure as manager of Luton Town Football Club, Paul Buckle has, with immediate effect, parted company with the football club," read the statement.
"The reasons for Paul's departure are fully understood by the board, who sincerely regret that he is leaving. We are fully aware that achieving managerial stability will create the conditions necessary for success on the football pitch.
"We are grateful to Paul for what he has brought to the club and believe that he has built the foundations necessary for Luton Town to achieve the board's desire of returning to the Football League as soon as possible."
A further statement will be released by the club tomorrow morning.