From the BBC
Kevin Kellems said an ongoing scandal surrounding his boss made it difficult for him to remain effective in his role at the Washington-based institution.
Mr Wolfowitz has been mired in a controversy involving his handling of a pay package for his girlfriend.
Mr Kellems, who had also worked with Mr Wolfowitz at the Pentagon, is expected to leave his post next week.
"Given the current environment surrounding the leadership of the World Bank, it is very difficult to be effective in helping to advance the mission of the institution," Mr Kellems said.
"I have tremendous respect and admiration for the Bank staff and management," he added.
Mr Kellems' departure comes at a crucial point in the investigation into whether Mr Wolfowitz acted properly over the authorisation of his girlfriend's promotion and pay increase in 2005.
The lingering controversy over the potential conflict of interest involving Shaha Riza, who is on the payroll of the World Bank, has prompted a growing chorus of voices calling for his resignation.
Critics argue the scandal is damaging the credibility of the global lender, amid a recently launched anti-corruption campaign.
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