The Hollywood actress has decided to focus on her children and her new role as the face of beauty range Restorea.
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In the statement, the pair said: "It is with hearts full of sadness that we have decided to separate.
"We have been working hard for well over a year, some of it together, some of it separated, to see what might have been possible between us, and we have come to the conclusion that while we love each other very much we will remain separate."
Speaking to E!, Gwyneth said: "I just finished a movie in January that I was doing at the end of last year in London with Johnny Depp and then I had two weeks here and then I did a couple of episodes for Glee for the 100th episode, so I have to go back to mommy."
Gwyneth Paltrow and Chris Martin
"I have a rule about one movie a year so I can't shoot anything for a while but I'm developing some material and working on the site and raising kids", she added.
The pair have notoriously spent the majority of their decade-long marriage avoiding being photographed together, with only a handful of snaps being taken since 2003.
The news came just two months after the couple were seen putting on a public display of affection at the Golden Globes ceremony and at an LA gala.
As news of the split broke, they were reportedly on holiday together in the Bahamas with their two children, daughter Apple, aged nine, and seven-year-old son, Moses.
The 41-year-old Oscar winner also revealed that she found it difficult to balance taking on lead roles with being the mother to two children.
"It's much harder for me", she said. "I feel like I set it up in a way that makes it difficult because… for me, like, if I miss a school run they are like 'where were you?' I don't like to be the lead so I don't [have] to work every day, you know I have little things that I like and obviously I want it to be good and challenging and interesting and be with good people and that kind of thing."