Hudgell has claimed that the current board at the Super League club does not have enough resources to move the outfit forward.
"I can't achieve the ambition I want for the club," Hudgell told BBC Radio Humberside. "Why should we lump in effectively half a million a year just to stand still? Success to other people might be to get into Super League, or just survive in Super League and try to make the play-offs.
"But, when we took over, our ambition was to make the club successful and win trophies, to make it the same as it was in the mid-1980s when we were the most successful club in the British game. After nine years, if I can't do that then it's time to walk away. All our money does is service debt."
Hudgell's decision comes in the wake of Hull's Easter 84-6 defeat to Wigan.