Tony Winterbottom is to leave the London Development Agency after a restructuring designed to accommodate mayor Ken Livingstone's new planning powers.
Winterbottom, a key player in London's successful Olympic bid, will step down from his job as executive director of major projects, and area and sector investment by the end of the summer.
He was shunted off the Olympic bid in the last LDA shake-up, launched by chief executive Manny Lewis in December, when he was moved from his high-profile role as executive director of regeneration and development.
It is understood that Winterbottom, who was last year involved in the LDA's negotiations to secure land for the Olympics that had been earmarked for the Stratford City development, will take on a senior advisory role for the LDA.
Under the restructuring, the LDA has advertised five new group director positions. These are a response to the extra powers on planning, housing and skills that Livingstone is expected to win in the coming weeks.
The positions include posts for skills development and Olympic and pan-London infrastructure development. The new team is expected to be in place by the autumn, replacing the interim set-up introduced when London won the 2012 games last July.