Kehl has had a long and important role at Borussia Dortmund.
He joined the club as a player in 2002 and stayed even after he ended his career.
In 2018, he stepped into a leadership role at the club. Four years later, in 2022, he replaced Michael Zorc as sporting director.
Recently, however, his position has become increasingly uncertain.
Last week, there were reports of recurring tensions between Kehl and the club management, with director Lars Ricken having a decisive influence over his future.
It is now clear that the parties are going their separate ways.
Borussia Dortmund have now announced that Kehl is leaving his role as sporting director with immediate effect.
"Borussia Dortmund has been a big part of my life for many years and I have a strong connection to the club. At the same time, we have jointly concluded that it is the right time to move on, both for the club and for me," Kehl told the club's website.
Ricken also comments on the decision to end the collaboration.
"In order to give both parties the opportunity to prepare, we agreed to terminate the contract with immediate effect. Sebastian has made a huge impact on the club and we are very grateful for his commitment," said Ricken.