The club will appoint a head coach to look after the first team, with Slade overseeing scouting among other duties.
Slade will be in charge for the final time when they host Birmingham as the Championship season ends on Saturday.
Meanwhile the bookies have installed former Liverpool and Wales captain Craig Bellamy as favourite to take over
Commenting on the decision chief executive Ken Choo said: "the club feels that it is necessary to have a change. We want to create a spark to take us to another level," chief executive Ken Choo.
Slade joined Cardiff in October 2014 from Leyton Orient and has said he wants to stay with the Bluebirds.
He held talks with chairman Mehmet Dalman following the defeat at Sheffield Wednesday which ended their play-off hopes.
Slade has insisted he has made ''progress'' at Cardiff this season with the Bluebirds destined to finish either seventh or eighth, having been placed 11th at the end of the 2014-15 season.