Former England captain Andrew Strauss was appointed as the ECB's new director of cricket earlier on Saturday.
"Peter is a man of great integrity and has offered a huge amount to England cricket," ECB managing director Tom Harrison said in a statement.
"He is admired by the players, his colleagues at the ECB and right across the game and deserves both our deep thanks and the widest recognition for his commitment and contribution.
"The last year has been a period of transition and rebuilding in which Peter has nurtured new talent, developed new players and laid the foundations for the new coaching structure to build on.
"This decision has been made as we focus on the future and our need to build the right approach and deliver success over the next five years within a new performance structure."

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