Corcoran is currently serving a four-month ban for his involvement in the Bombers' controversial fitness regime and was due back at Tullamarine in February.
MORE: Four Christmas parties where Essendon coach James Hird will be welcome | Brent Stanton 'not worried' by ASADA Essendon investigation
But the former Athletics Australia chief will now only return to Essendon to help with their transition period as they look for his replacement.
Corcoran's departure continues the exodus of Essendon officials who were at the club during their suspect supplement program.
Former football manager Paul Hamilton, sports scientist Stephen Dank, high performance manager Dean Robinson, chairman David Evans and CEO Ian Robson have all left Essendon in the past 15 months.
Meanwhile, senior coach James Hird isn't allowed back at the True Value Solar Centre until August after copping an unprecedented one-year suspension.
"I took the general manager of football role to implement a succession plan and knowing in time I would help the club find the right person to succeed me," Corcoran said.
"Over the last couple of months I've had the opportunity to step away from everything, travel and reflect on a difficult year and I have decided that now is the right time for me to consider the next phase of my life.
"I've enjoyed my time working at Essendon with a number of highly professional and quality people. I wish the club every success in the future."
Corcoran was brought over to Essendon at the end of 2010 as part of the fabled dream team which was spearheaded by Hird and Mark Thompson who is now serving as the club's interim coach in the absence of Hird.
Thompson was whacked with a $30,000 fine by the AFL for his part in the supplement scandal.
Meanwhile, Essendon have also announced that their CEO position will remain vacant for the foreseeable future.
As a result, the club has implemented an 'alternative' executive structure which has seen former general manager of projects and partnerships Xavier Campbell assume the most senior position of chief operating officer.
It also means chairman Paul Little and finance director Paul Brasher will have more hands on roles at the club which will see them help with the recruitment of more personnel to executive roles at the club such as the football manager.
Interim chief executive Ray Gunston will officially depart on December 31 but has agreed to return to Essendon when needed in January to help with the handover to Campbell.
"The board is excited to be implementing a fresh strategy within an alternative structure," Little said.
"The revised structure includes the elevation of certain existing roles and the creation of new positions, to improve the overall strength of the club's management.
"The board decided the short-listed candidates for the CEO role didn't provide all of the qualities we believed required to adequately fill this demanding role.
"It was determined the club would promote from within and create a new chief operating officer position to manage the key areas of the business."