MacWilliams, who had previously announced that he would retire at the end of this academic year, spoke of his resignation on Radio 4's Today programme this morning.
A delegation of education professionals met with the government in Westminster today to discuss the issue.
MacWilliams was unavailable for further comment, but a colleague at Leeds College said his retirement had come a year earlier than planned because of MacWilliams' disillusionment over further education funding.