Garda commissioner Martin Callinan announced he was stepping down with immediate effect following repeated criticism of his use of the word "disgusting" to describe the actions of police whistleblowers.
Callinan, who joined the Garda almost 41 years ago and rose to the rank of commissioner in 2010, made the comments before a parliamentary committee in January.
Two police whistleblowers have claimed there is widespread manipulation of Ireland's traffic laws, namely the penalty points system -- whereby drivers get points on their licences for infringements.
"I felt that recent developments were proving to be a distraction from the important work that is carried out by An Garda Siochana on a daily basis for the citizens of the state in an independent and impartial manner," Callinan said in a statement.
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Callinan has also recently denied that his force was involved in the suspected bugging of an independent Garda watchdog, which is responsible for investigating complaints against the force.
The Irish police have become a political minefield for the coalition government with debates raging in parliament and the media in recent months.
The justice spokesman for opposition party Sinn Fein said Callinan made the right decision to resign, accusing the former commissioner of downplaying and even dismissing the allegations.
Meanwhile, the government announced today it had learned that a system was in place in a large number of Garda stations whereby "incoming and outgoing telephone calls were taped and recorded."
"The implications of this matter are potentially of such gravity that the government has decided to set up a statutory commission of investigation into this matter of significant public concern," it said in a statement.