Graham Purvis is relinquishing the role of manager and will finish in the next couple of weeks.
Highlanders general manager Roger Clark said both parties had agreed it was time to move on, and Purvis had done a great job for the past two years.
Purvis (53) said he was seeking to do something new and felt it was a good time to move on.
The former All Black prop joined the side in late 2012. He said he had enjoyed working with a group of young players who had worked hard all year to make it to the playoffs for the first time in 12 years.
Purvis has a corporate background and he said he was keen to stay in Dunedin.
Clark said the franchise had its eye on a couple of people for the manager's role and hoped to make an appointment by October 1.
It would be filled within New Zealand rugby and would not be advertised.
All the Highlanders coaches come off contract on August 31, and so far only head coach Jamie Joseph has signed for another two years.
Clark said the three assistant coaches - Tony Brown, Scott McLeod and Jon Preston - were all seeking to sign for another two years.
They had to complete the paperwork before they could officially be appointed.
Clark also signalled there was potential to look at an additional forwards coach.
''We are looking at our forward resources and seeing what we can get in there.
"Over the past couple of years they have been working with the likes of Kees [Meeuws] and Clarke Dermody, but that has only been part-time,'' Clark said.
''We are looking to add another voice in the forwards role. We haven't found anyone yet and we may not find that person.''
He said the role might be part-time or full-time, but that depended on who the side managed to secure.
With many coaches overseas and on good contracts, the Highlanders may struggle to find the coach they want.
Clark said if they could not get the coach they wanted, then no appointment would be made.
Appointing a forwards coach would allow Joseph more time to look over the entire team and game plan.
Joseph came on board as head coach in 2011, while McLeod and Preston have been with the franchise for two years.
Brown joined last year and made a real impact with the backline and the attack of the Highlanders.
His future with Otago appears clouded because the ability to coach both a Super rugby side and an ITM Cup team is mentally taxing.
The pre-season for the Highlanders starts almost as soon as the ITM Cup finishes.
