Andrew Hirst has spent almost nine years in the role, helping deliver Scott Morrison's election victory in 2019 and also playing a role in the following two crushing coalition defeats.
He will formally step down in June, he said in a lengthy statement, praising the work of the party over the past decade but warning of serious challenges ahead.
"It has been an enormous honour to serve as federal director for close to nine years," Mr Hirst said.
"But now is the right time to hand over to new organisational leadership and allow for a seamless transition ahead of the next federal election."
His final test as the party's administrative leader will be the Farrer poll next month, triggered by former opposition leader Sussan Ley's resignation from parliament.Â
Liberal insiders believe the vote is a tight three-way race between their candidate, One Nation and a Climate 200-backed independent, and say the final result will likely come down to preference flows.
Mr Hirst thanked the staff and volunteers who'd worked with the party in recent years.
"Despite setbacks that should not be minimised, much has been achieved over the last nine years," he said.
"Our party faces significant challenges that must be confronted with renewed energy and determination."
The role of federal director is mostly behind the scenes. They are responsible for running election campaigns and leading the administrative side of the party.
Opposition Leader Angus Taylor praised Mr Hirst's contribution to the party and its election campaigns.
"In 2019... he was crucial in delivering a result few thought possible - and he's done so with resilience and integrity," Mr Taylor said in a statement.
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