Northern produces Goodfella's Pizzas and Dalepak frozen foods

Ms O'Driscoll, who joined the Leeds-based group in 2004, will step down on Monday.

She will be succeeded by Stefan Barden, who currently runs the chilled meals and bakery divisions.

Ms O'Driscoll will be paid her full annual salary of �470,000 in 2007. A spokeswoman said she would consider her future after a Caribbean holiday.

Last month Northern Foods recently sold its bread, pastry, cakes and flour businesses to Vision Capital for �160m.

'Right time'

The firm said it would be focusing on more successful brands such as Fox's Biscuits and Goodfella's Pizzas.

Ms O'Driscoll said: "Since arriving at Northern Foods three years ago, I have completed an extensive restructuring, including the sale of 40% of the business and the development of a high quality management team able to meet our customers' service standards.

"Today Northern Foods is a simpler, more resilient and more competitive business and I believe it is the right time for me to move on."

Mr Barden, a former managing director of Heinz UK and Ireland, joined Northern Foods in January 2006.

He said: "We will win in our chosen markets through a relentless focus on consumers; innovatively providing them with some of the best tasting food in the UK; delivered to our customers daily, with outstanding service.