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Paul Smith will leave at the end of July, after helping establish the experimental art festival in 2000.
''The festival is in a good place, so it's a good time to move on and explore new challenges and new directions,'' Mr Smith said.
''It's been a huge part of my life - 14 years - but change is healthy for individuals and for festivals.
''New blood is a good thing.''
Mr Smith will also cease managing the Amped Music Project and the Pecha Kucha Nights, but will continue to be involved with the Dunedin Winter Carnival, Dunedin Fringe Arts Trust chairman Warren Taylor announced yesterday he would also be standing down, in October, after eight years at the helm.
''The Fringe Festival has evolved to become a major landmark in the city's annual calendar since its inception in 2000, but I think a change at the top is healthy and can lead to new developments and ideas which will be beneficial,'' Mr Taylor said.
Applications will open for the director position on June 2.