Victoria Cross recipient Ben Roberts-Smith is taking leave as boss of the Seven Network's Queensland operations, as he pursues a defamation case in the Federal Court.
The announcement was made by Seven West's CEO James Warburton in an all-staff email on Monday.
Mr Roberts-Smith launched the defamation case against The Sydney Morning Herald, The Age and The Canberra Times newspapers over a series of stories from 2018 alleging he committed war crimes in Afghanistan — which he strongly denies.
The newspapers reject his claim, and the trial is due to start in the Federal Court in early June.
Mr Warburton said Mr Roberts-Smith's leave from his position as general manager Seven Brisbane and 7Queensland would begin immediately.
"Ben and I believe this mutual decision is best for both him and our company," Mr Warburton said.
"As the trial is currently set down for eight weeks, it's likely this won't be until after August."
Earlier this month Mr Roberts-Smith labelled further allegations about his conduct, broadcast on the Nine Network, as "baseless".
60 Minutes alleged he had buried USB drives containing purportedly compromising material in his backyard, rather than providing them to police and military investigators.
The program also broadcast secret recordings of Mr Roberts-Smith, in which he appeared to say he was indebted to Seven West chairman Kerry Stokes for financially supporting his legal battle and promised to destroy journalists who were publishing stories about him.
At the time Mr Roberts-Smith took aim at Nine's journalist Nick McKenzie, arguing he had not put any of the allegations to him before broadcast.
The Australian Federal Police have confirmed to federal Parliament fresh investigations into Mr Roberts-Smith had been launched following 60 Minutes' reporting.
Last year the Federal Court heard eyewitnesses had detailed to investigators how Mr Roberts-Smith allegedly committed a violent war crime, by kicking a handcuffed Afghan civilian off a cliff in 2012.
Mr Roberts-Smith denied the "false allegations", and said the newspapers reporting and defence of the defamation suit were "completely without any foundation in truth".
The newspapers scored a win in pre-trial wrangling in April, with Justice Anthony Besanko allowing four Afghan villagers and a member of the ADF to give evidence in the court case.