Ms Callander said she planned to take a “short break” over the spring but gave no indications as to what her next move would be.
Among her notable achievements, Ms Callender, who will remain in her post until March, was awarded an OBE in the summer for her services to local government and has been named in the LGC50 2008.
Under her guidance, Tameside was one of few councils in the country rated as four-star and improving strongly for successive years.
Ms Callender said: “When I leave Tameside in the spring, I intend to take a short break from public office. However, I remain as passionate as ever about local government and public service and feel sure that before too long there will be new and exciting leadership opportunities for me to explore.
“My leaving Tameside and handing over the reins, has been an enormously difficult decision for us all, but I believe it is the right one for both myself and the council.”