In a tweet, Dorsey wrote: "not sure anyone has heard but, I resigned from Twitter."

The company's Chief Technology Officer Parag Agrawal will take over the post of the CEO.

The move will be effective immediately, though Dorsey will stay on the board of the social media company until his term expires in 2022, Twitter said in a statement Monday.

"I've decided to leave Twitter because I believe the company is ready to move on from its founders," Dorsey said in the statement.

"My trust in Parag as Twitter's CEO is deep. His work over the past 10 years has been transformational. I'm deeply grateful for his skill, heart, and soul. It's his time to lead," he added in the statement.

Dorsey, 45, is also the head of payments company Square Inc. and has been taking an increasing interest in cryptocurrencies recently.

Dorsey stepped down as CEO of Twitter in 2008, but returned to the company in 2015.

His successor, Parag Agrawal, did his graduation from IIT-Bombay and PhD in computer science from Stanford University.

He joined Twitter in October 2011 as an ads engineer and soon after was promoted to the company's post of 'Distinguished Software Engineer'.

In 2017, Twitter appointed Parag Agrawal as its Chief Technology Officer.

After the announcement, Agarwal tweeted: "Deep gratitude for @jack and our entire team, and so much excitement for the future. Here’s the note I sent to the company. Thank you all for your trust and support."