Ms Stewart will remain an employee of her firm

Ms Stewart will remain connected to Martha Stewart Living Omnimedia, in the role of founding editorial director.

Omnimedia markets media and household products with the Martha Stewart brand, until recently one of the most potent in the US market.

The firm's future has been called into question since Ms Stewart's conviction.

Source of inspiration

Ms Stewart, who remains out of jail pending sentencing and an appeal, will continue as Omnimedia's ideas guru.

She will work on new product design, and is to write two books - Homekeeping and Baking.

Sharon Patrick, Omnimedia's chief executive, said the firm was "deeply saddened" by Ms Stewart's resignation.

"However, all of us also believe that the company and our constituencies benefit most if we are able to continue to take advantage of Martha's creative inspiration and capitalise on her prodigious skills and experience in the domestic arts."

Ms Stewart said she was "heart-sick" about her current situation, but that stepping back was in the best interests of the company.