A highly regarded coach, the 64-year-old has had three spells with Derbyshire and was batting coach when the club won the LV= County Championship Division Two title in 2012.
He was appointed Head of Cricket in 2018 before Derbyshire’s maiden Vitality Blast Finals Day appearance in 2019 and has overseen the progression of the likes of Sam Conners to the first team, while securing the recruitment of players such as Leus du Plooy, Brooke Guest and Ben Aitchison.
Chairman, Ian Morgan OBE, said: “It has been a bitterly disappointing season, much of which, including injuries, has been out of Dave’s control.
“It is the mark of the man that he has taken responsibility for on-field performances. He leaves a squad which contains a number of young talented players who will develop their skills in the coming seasons.
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“On behalf of the Supervisory Board, I would like to thank Dave for his integrity and commitment throughout his tenure and wish him the very best for the future.”
Houghton said: “It has been a challenging season in many ways, and I believe it is the right time to step aside for both myself and the club.
“I hope to be leaving the club in a better position than when I took on the role in 2018 and with a good squad and a highly-promising pathway setup, I am confident that Derbyshire will enjoy success in the future.”
The club will now begin a thorough recruitment process for the vacant Head of Cricket role.