Mike Ashley is to step down as a director of Sports Direct owner Frasers Group next month.
The billionaire retail tycoon will leave the Frasers board after the group's annual shareholder meeting on October 19.
However, Mr Ashley will continue to act as an adviser to the board and senior management - and has agreed to lend £100million to the business.
The former Newcastle United owner, who founded the Sports Direct business 40 years ago, had already handed over the reins to his son-in-law Michael Murray.
Mr Murray was promoted to chief executive in May this year, while Mr Ashley stepped back into an executive director role.
Mr Ashley said: "It is clear that the group has the right leadership and strategy in place and I feel very confident passing the baton to Michael and his team.
"Although I am stepping down from the board, I remain 100% committed to supporting Frasers and Michael's plans and ambitions, and I look forward to helping the team as and when they require me.
"My commitment and support as a Frasers' shareholder is as strong as ever."
Mr Murray added: "Mike has built an incredible business over the past 40 years and, on behalf of the board and the group, I want to thank him for all he has done.
"With our new strategy and leadership team, we are driving this business forward at pace and we are all excited for the future."
Mr Ashley, from Burnham, Buckinghamshire, founded Sports Direct as a single store in Maidenhead in 1982.
He later changed the name of his parent company to Frasers Group after buying the House of Frasers department store in 2018.
Other brands owned by Frasers Group include Game, Evans Cycles and Jack Wills.
Mr Ashley remained closely involved in the firm's management after stepping down as chief executive and is still the group's controlling shareholder with a stake of nearly 70%.
He said he remained "100% committed" to backing the group.
His son-in-law Michael Murray married his eldest daughter Anna in a lavish multi-million pound wedding at Blenheim Palace in May this year.
Mr Murray was originally hired in 2016 to oversee the Fraser's real estate activities before his promotion to 'head of elevation' in January 2019.
