Toto Wolff has stepped down from his role with Valtteri Bottas' management group after the Finn was confirmed as Mercedes' new driver.
Bottas was announced as Formula One world champion Nico Rosberg's replacement on Monday and team boss Wolff moved quickly to avoid any possible conflict of interest.
He told Sky Sports: "It would be a conflict of interest if you are involved in the management of a driver and equally being his boss and running the team.
"It's something we agreed a long time ago, that there wouldn't be any driver I was looking after driving any Mercedes racing car, and that's what's happening."
Former Williams driver Bottas, 27, has achieved nine career podiums in F1, but is yet to record a race win.
It was also revealed by Mercedes that Rosberg had taken on an ambassadorial role with the team for 2017.
His first assignment is in Geneva on Tuesday, when he will appear alongside former team-mate Lewis Hamilton - with whom he endured a sometimes frosty relationship - on behalf of one of Mercedes' partners.