Mr Caller, who underwent heart surgery a year ago, has given Hackney LBC a lengthy notice period to allow for the timely recruitment of a successor and a smooth handover.
* Under local government rules, chief executives whose length of service plus their age adds up to 85 years, may automatically elect to retire subject to the approval of council members. (Local Government Pensions Regulations 1993, regulation 31).
Mr Caller's decision to retire will be considered by full council on 23 June.
Mr Caller joined Hackney LBC as chief executive in April 2000.