The 39 year-old has relinquished his newspaper position to focus on expanding the company’s international television business, News Corporation, NI’s parent company, said in a statement.
During his five-year term he oversaw the closure of the News of the World, News International’s biggest selling newspaper.
He also faced fierce criticism of his handling of the hacking scandal and was accused of misleading parliament over his knowledge of phone hacking at the newspaper.
And he oversaw the decision to put The Times’ website behind an online paywall.
Following the announcement the News Corp chairman Rupert Murdoch, James’s father, praised his son’s leadership, saying: “We are all grateful for James’ leadership at News International…where he has made lasting contributions to the group’s strategy in paid digital content and its efforts to improve and enhance governance programs.