His resignation followed Congress and the UPA coalition unanimously endorsing creation of a separate Telangana state carved out of Andhra Pradesh.
Sources in Gorkha Janamukti Morcha, which Gurung heads, said he will fax his resignation to the Centre and West Bengal government.
Details of the letter was, however, not known.
GJM sources said students of boarding schools in the Darjeeling hills and tourists have been asked to evacuate in the next three days.
Today was the second day of the three-day bandh by GJM in support of its demand and Gurung had yesterday threatened that the three-day strike would be extended into an indefinite one to press for Gorkhaland in case statehood was conferred on Telengana.
The bandh disrupted normal life in the Darjeeling hills with all shops, markets, school, colleges, government offices, banks and post offices closed as GJM supporters gathered at Chowkbazar in Darjeeling as also in the two other hill subdivisions of Kurseong and Kalimpong.
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