Pountney leaves with Saints second-bottom in the table

The former Scotland international had already stated in September that he would be relinquishing his post at the end of the current season.

But he has left with immediate effect in order to set up a new business with his wife Ali, teaching babies to swim.

"It has been an honour to have been a part of a club with many magical memories," he told the club's website.

"Northampton has been a huge and fantastic part of mine and my family's lives.

"It is a club with a wonderful history and I believe an exciting future, and although it will always remain close to my heart, I am now fulfilling a long-held dream of going into business with my wife Ali.

"I had intended to depart in the summer, but after consideration, I thought it best to ensure a quick and seamless transition for the club."

Everyone here is sorry to see him go Saints chief executive Allan Robson

The former flanker joined the club in 1991 and worked his way through the Saints academy before making his senior debut against Coventry in 1994.

He made 215 appearances for the club, scoring 46 tries, and was part of the side that won the 2000 Heineken Cup.

Pountney, who earned 32 Scotland caps, retired from Test rugby in early 2003 after walking out of a national training session and complaining of the "unprofessionalism" of the Scottish Rugby Union.

He quit rugby completely 13 months later after failing to recover from a broken ankle.

Together with Paul Grayson, Pountney took over the coaching at Franklin's Gardens following the dismissal of head coach Alan Solomons in November 2004 and the pair steered the club to Premiership safety.

Pountney became the club's director of rugby at the start of last season, leaving Grayson to become head coach.

"Budge has served the club extremely well throughout his career and everyone here is sorry to see him go," said Saints chief executive Allan Robson.

"With plans well in hand for his departure, the club has decided to permit Budge to leave early to enable him to concentrate in putting his own business plans in place.

"I know all Saints supporters will join us in thanking Budge for the massive contribution he has made to the club during the past 15 loyal years."