Lt Gen Aslam was superseded by Lt Gen Sharif and Lt Gen Rashad Mahmood, who was made the Chairman Joint Chief of Staff Committee(CJCSC).
Aslam has sent his resignation letter to Defence Ministry from the General Headquarters(GHQ), a senior government official said.
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Lt Gen Aslam had also skipped the farewell dinner hosted by Prime Minister Nawaz Sharif last night for the outgoing Army chief Gen Ashfaq Parvez Kayani who will be hanging up his boots tomorrow.
He was the senior most General after Kayani.
Sharif had earlier said that he would go by seniority to select the 15th Chief of the Army Staff to head the 600,000-strong Army but yesterday chose the third senior ranking General.
Pakistani analysts said Aslam's resignation was on the cards after he was superseded in the appointment of Gen Kayani's successor.
Some analysts were of the view that appointment of Lt Gen Mahmood as the CJCSC, a largely ceremonial post, is an attempt by the Prime Minister to sideline Gen Kayani's preferred candidate and reassert his authority over the military.
Asked about Lt Gen Aslam's resignation, a leading Pakistani defence analyst said it was expected.
"This has been the tradition. He will get all the benefits of retirement. This is normal practice and that is how a gentleman and soldier behaves," Lt Gen (Retd) Talat Masood told PTI.
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