Barbara Spicer, chief executive of Salford City Council, has resigned and will leave the post after seven years.
City Mayor Ian Stewart, with whom she reportedly clashed, said he will "review the organisational structure and management of the city council, as it looks to make savings and provide more efficient services to residents."
Stewart said: "Barbara told me she wanted to leave for new challenges. I hope that false rumours about personality issues do not taint the good work she has done for Salford.
"We are both well aware that as austerity bites Salford harder and deeper, we must do more with less. That's why I am reviewing every area of the council to see where we can save money to try and protect as many vital services as possible that Salford residents need.
"I wish Barbara all the best in the future and thank her for the good work that she did for the people of Salford."
Spicer oversaw an era of regeneration across the city during her tenure bringing the BBC to Media City UK and large-scale housing renewal. She joined Salford from Knowsley, where she was director of regeneration and neighbourhoods, in 2006.
Spicer represented Salford on the Association of Greater Manchester Authorities board, taking a lead role on economic development, employment and skills.
She said in a statement on Friday: "After more than seven years at Salford, I have decided to move on to new challenges. Leading this organisation has been challenging and rewarding. I will look back on my time here with great satisfaction at what I was able to achieve with others.
"The City Mayor has been incredibly supportive since he was elected in May 2012 to lead Salford forward through these difficult times.
"Bringing the BBC to Salford, which helped to revitalise Salford Quays, is one of the proudest achievements of my career."