diff --git a/jupyter_scheduler/extension.py b/jupyter_scheduler/extension.py
index 001a9adf..b1819279 100644
--- a/jupyter_scheduler/extension.py
+++ b/jupyter_scheduler/extension.py
@@ -92,3 +92,25 @@ def initialize_settings(self):
         if scheduler.task_runner:
             loop = asyncio.get_event_loop()
             loop.create_task(scheduler.task_runner.start())
+
+    async def stop_extension(self):
+        """
+        Public method called by Jupyter Server when the server is stopping.
+        This calls the cleanup code defined in `self._stop_exception()` inside
+        an exception handler, as the server halts if this method raises an
+        exception.
+        """
+        try:
+            await self._stop_extension()
+        except Exception as e:
+            self.log.error("Jupyter Scheduler raised an exception while stopping:")
+            self.log.exception(e)
+
+    async def _stop_extension(self):
+        """
+        Private method that defines the cleanup code to run when the server is
+        stopping.
+        """
+        if "scheduler" in self.settings:
+            scheduler: SchedulerApp = self.settings["scheduler"]
+            await scheduler.stop_extension()
diff --git a/jupyter_scheduler/scheduler.py b/jupyter_scheduler/scheduler.py
index e574df80..a40a6ea8 100644
--- a/jupyter_scheduler/scheduler.py
+++ b/jupyter_scheduler/scheduler.py
@@ -98,23 +98,12 @@ def _default_staging_path(self):
     )
 
     def __init__(
-        self,
-        root_dir: str,
-        environments_manager: Type[EnvironmentManager],
-        config=None,
-        **kwargs,
+        self, root_dir: str, environments_manager: Type[EnvironmentManager], config=None, **kwargs
     ):
         super().__init__(config=config, **kwargs)
         self.root_dir = root_dir
         self.environments_manager = environments_manager
 
-        loop = asyncio.get_event_loop()
-        self.dask_client_future: Awaitable[DaskClient] = loop.create_task(self._get_dask_client())
-
-    async def _get_dask_client(self):
-        """Creates and configures a Dask client."""
-        return DaskClient(processes=False, asynchronous=True)
-
     def create_job(self, model: CreateJob) -> str:
         """Creates a new job record, may trigger execution of the job.
         In case a task runner is actually handling execution of the jobs,
@@ -394,6 +383,12 @@ def get_local_output_path(
         else:
             return os.path.join(self.root_dir, self.output_directory, output_dir_name)
 
+    async def stop_extension(self):
+        """
+        Placeholder method for a cleanup code to run when the server is stopping.
+        """
+        pass
+
 
 class Scheduler(BaseScheduler):
     _db_session = None
@@ -427,6 +422,13 @@ def __init__(
         if self.task_runner_class:
             self.task_runner = self.task_runner_class(scheduler=self, config=config)
 
+        loop = asyncio.get_event_loop()
+        self.dask_client_future: Awaitable[DaskClient] = loop.create_task(self._get_dask_client())
+
+    async def _get_dask_client(self):
+        """Creates and configures a Dask client."""
+        return DaskClient(processes=False, asynchronous=True)
+
     @property
     def db_session(self):
         if not self._db_session:
@@ -775,6 +777,14 @@ def get_staging_paths(self, model: Union[DescribeJob, DescribeJobDefinition]) ->
 
         return staging_paths
 
+    async def stop_extension(self):
+        """
+        Cleanup code to run when the server is stopping.
+        """
+        if self.dask_client_future:
+            dask_client: DaskClient = await self.dask_client_future
+            await dask_client.close()
+
 
 class ArchivingScheduler(Scheduler):
     """Scheduler that captures all files in output directory in an archive."""