Fortescue Metals Group (ASX: FMG) founder Andrew Forrest will retire as Chief Executive Officer effective 18 July 2011, the eighth anniversary of the company's establishment.

Mr Forrest has accepted a unanimous invitation from the Fortescue Board to assume Chairmanship of the company at the Board's next meeting on 18 August.

Mr Forrest said his decision to step back from the day-to-day running of Fortescue did not indicate any lessening of his commitment and passion for the company he founded in 2003.

"Fortescue is now recognised for its ability to deliver on its targets and, with Nev's extensive experience and knowledge available to lead the Company, this is a perfect time for me to move away from my day-to-day, hands-on role," he said.

Mr Forrest said he intended to focus increased energy, time and attention on philanthropic activities, particularly assisting to rid Australia of its Indigenous disparity.

Current chairman Herb Elliott praised Mr Forrest for his passionate and determined efforts over the past eight years to build Fortescue as one of the world's great business and mining success stories.

"Shareholders are fortunate Andrew has accepted the Board's offer to become Chairman and remain closely involved with the delivery of Fortescue's growth plans."

Mr Elliott becomes lead independent director in the role of Deputy Non-Executive Chairman.

Having been appointed Chief Operating Officer in January 2011, Mr Nev Power will now move to the role of Chief Executive Officer.