In a statement, Mr Nutt said after a busy six years in which he had overseen two state elections, one federal election and "done two transitions for Prime Ministers Turnbull and Abbott" he felt "it is time".

"A change now will give the federal executive time to select a new director who can work with the Prime Minister, Parliamentary party and the organisation to prepare for the next election," he said.

"Federal executive will meet later this week and will receive the report from Andrew Robb and his committee on the 2016 election.

"Invariably a close result has been the subject of criticism. I am sure Andrew Robb's committee will have a number of recommendations.

"This is as it should be because all parties must continually refine and improve their activities to remain competitive in a robust democratic system like Australia's."

Mr Nutt, 59, is widely considered one of Australia's most formidable back room political operatives of the past 25 years.

In a statement, Mr Turnbull thanked Mr Nutt and described him as "the consummate political professional" as well as "a dear friend".

He defended the 2016 campaign performance.

"Tony took over the directorship of the federal LIberal Party in late 2015 in very difficult circumstances," he said.

"He then proceeded to direct the campaign which saw the government returned in the face of a ferocious fear campaign.