The British Lions legend joined as Leeds Carnegie chairman in July 2012 before becoming executive president two years later having driven the decision to rebrand as Yorkshire Carnegie.
McGeechan was initially tasked with searching for the investment across the country to fire the club back into the Premiership and making them a sustainable force.
However, they have failed to do so and the Championship club hit alarming financial problems in recent months.
Having lost a major investor, they informed the squad and staff last month that they would be going to a part-time status in 2019-20 prompting a massive player exodus with director of rugby Chris Stirling also leaving to join rivals Cornish Pirates.
Carnegie, including chairman David Dockray and chief executive Gary Hetherington, are trying to plot a way through the mire given they still have eight contracted players next term dominating their reduced budget.
However, McGeechan’s departure, bizarrely, became apparent Thursday morning via a Tweet from his wife and before a six-hour board meeting that night.
He has been contacted for comment but has not responded.
Instead, the club issued a statement which confirmed Carnegie had ‘received notice that Sir Ian McGeechan has tendered his resignation from his position as a director and executive president of the club from June 30th.’
Dockray added: “We are naturally disappointed with Ian’s decision and we thank him for his contribution over the past seven years and wish him well in the future.
“The Board are working through a challenging period and remain focused on delivering a positive outcome for Yorkshire Carnegie.”