This will end a tenure which brought record prize money but also growing complaints from lower-ranked players about their pay and travel schedules.
Kermode’s contract was to expire at the end of the season and some players, including 17-times Grand Slam champion Rafa Nadal, believed the 54-year-old Briton should have continued in the job.
The Council met privately for over six hours on Tuesday at the BNP Paribas Open in Indian Wells to discuss Kermode’s future.
Players’ representatives on the ATP Board failed to endorse Kermode at a meeting on Thursday, according to media reports.
“It’s been a privilege to serve as ATP executive chairman and president since 2014 and I’m very proud of what we have achieved during this time,” Kermode said in the statement.
“I would like to thank everyone at the ATP, and all the players and tournaments for the support over the years.
“I remain fully dedicated to the role for the remainder of my term and wish the organisation every success in the future.”
While prize money is at an all-time high and attendance and viewership of the ATP Tour has soared, players like 24-year-old American Jared Hiltzik, the world number 355, have complained.
They said they cannot get into tournaments under new ATP and ITF rules.
“It’s tough. Playing some of the best tennis of my life right now and at 350 I can’t get into any challengers,” he wrote on Twitter, referring to the ATP Challenger Tour, which is a step below the ATP World Tour.
“At this point in my career, is it worth it to play futures? Or am I just taking away opportunities from other players who are just starting out?” he said, referring to the entry-level International Tennis Federation’s Futures
Possible replacements for Kermode include 42-year-old American Justin Gimelstob, an ATP board member and former player who won the Australian and French Open mixed doubles titles in 1998.