This was confirmed by the utility.
Tsotsi has been at the helm at Eskom as chair and recently made headlines following the suspension of four executives that prompted public outcry, particularly National Union of Mineworkers, who called for his expulsion.
The utility said in a statement that ‘Tsotsi and the board have decided to part ways amicably’.
Eskom says Tsotsi agreed to step down to allow the board to focus on key issues facing the parastatal.
Former minister of arts and culture Dr Ben Ngubane will serve as acting chair.
NUM boss Frans Baleni says the resignation by Tsotsi shows leadership.