The Brazilian has decided to leave the Ligue 1 champions this summer in the wake of his 13-month ban for shoving a referee.
The 43-year-old was recently suspended for the entire 2013-14 campaign by the French Football Federation after losing his appeal against a nine-month ban for pushing referee Alexandre Castro in the tunnel following PSG´s 1-1 Ligue 1 draw with Valenciennes on May 5.
Leonardo was consequently banned from all official duties surrounding his position, while he was also not permitted to stand on the touchline during matches, and has therefore opted to leave his role.
"Leonardo today informed Paris Saint-Germain of his desire to resign from his position as sporting director at the end of the current transfer window," a PSG statement reads.
"We regret his choice but respect his decision. We thank him greatly for his important contributions towards the project of building a top European club in Paris and wish him all the best for his future career choice."
Leonardo had joined PSG in the summer of 2011 and has since lured players such as Javier Pastore, Ezequiel Lavezzi, Thiago Silva, Zlatan Ibrahimovic and David Beckham to the French capital.