Former Gloucester and Sale coach Redpath was appointed in March 2015 but his contract was due to expire at the end the current campaign.
He will leave professional rugby entirely to accept a position with AFEX, one of the one of the world’s largest non-bank providers of global payment, foreign currency and risk management solutions.
Redpath led Carnegie to the Championship promotion play-offs last season but they lost in the semi-finals to Doncaster Knights while they also reached the British & Irish Cup Final only to lose at home to London Welsh
They are currently chasing promotion again and are second in the table after winning 12 of their 13 games so far.
However, at times, they have been far from convincing and leaders London Irish remain firm favourites to make an immediate return to the Premiership.
Carnegie executive president Sir Ian McGeechan said: “Bryan will leave the club this summer stronger than when he arrived.
“An opportunity has arisen for him outside of rugby and we understand his reasons for this next career move.
“Bryan remains committed to the club for the remainder of the season and I know, from speaking to him, that he has a passion to finish off the job here started two years ago. “His leadership has put us in a strong position to challenge London Irish for promotion to the Aviva Premiership this season.
“From next season, James Lowes will become Head Coach again, which will give us a smooth transition into next season and allow us to build on the achievements of the last two years.
“Bryan and James will continue to work together this season along with the rest of the current coaching staff.
“As we continue our pursuit of promotion to the premiership we also intend to strengthen our team further with the appointment of an experienced director of rugby or performance director to work with James and the coaching team.
“On behalf of everyone connected with Yorkshire Carnegie, I would like to thank Bryan for his hard work and dedication over the past two years and I look forward to finishing the season, and his time at the club, in the best possible fashion and that is to achieve promotion to the Premiership.”
Lowes, 47, was hailed a success for the brand of football played under him when originally joining Carnegie from his role as Leeds Rhinos assistant for 2013-14.
However, he quit in June 2014 to return to rugby league as head coach of Bradford Bulls - the side where he made his name as a player.
He left Bradford in April last year, though, due to “personal reasons” before the club imploded and he returned to Carnegie working underneath Redpath at the end of last season.
Redpath won 60 caps for Scotland, captaining the team on 26 occasions, and appearing in three World Cups.
He said: “I would like to thank everyone involved in Yorkshire Carnegie; the owners, Board of Directors, the staff, players and supporters.
“They have welcomed me and supported me throughout my time however we are not quite at the time for goodbyes just yet with the most exciting part of the season ahead of us.
“This new challenge has been a massive decision for me to make after 29 years on from starting my career in the Melrose first team.
“There are so many people to thank for helping me have some amazing years and memories in rugby.
“The support from my family, team-mates and all the staff I have worked with will last forever with me. I wish Jimmy and Steve (Boden) and everyone at Yorkshire Carnegie all the best in the future and look forward to finishing my time in the game on a high this season.”