"I want to thank (current owner) Tom Dundon, (former owner) Peter Karmanos, and (former general manager) Ron Francis for the trust they put in me to lead the team," said Peters. "I feel the incoming general manager should have the ability to hire his own head coach."
Peters added, "I feel like this is a good time to move on, and I am looking forward to my next challenge."
He had until Friday to exercise an exit clause in his contract, team president and interim general manager Don Waddell confirmed Monday.
"I have a lot of respect for Bill as a person and coach," Dundon said. "We thank him for his time with the Hurricanes and wish him success in whatever comes next."
Peters held the position for four seasons, leading the Hurricanes to a regular-season record of 137-138-53 and zero playoff appearances. He's set to serve as Canada's bench boss at the World Championship in May.
The Hurricanes will immediately begin searching for a new head coach. The team is also looking for a GM after removing Francis from that position in early March.