The announcement said Los Angeles hitting coach Don Mattingly will become the Dodgers' manager next year.
Torre, 70, took the Dodgers to the playoffs his first two seasons but the team is 72-75 and probably won't qualify for post-season play in 2010, his third year with the team. He's taken teams to the playoffs each of the last 14 seasons.
He owns a 2,318-1,990 record over 29 seasons as a manager. He won the World Series four times -- all with the New York Yankees. In addition to the Dodgers and Yankees, Torre managed the New York Mets, Atlanta Braves and St. Louis Cardinals.
His win total is the fifth highest in major league history.
Mattingly, 49, has never managed before. He's been on Torre's coaching staff, first with the Yankees and now with the Dodgers, since 2004.