Source: Sharecast
"The board and Steve have agreed that now is the right time to search for a new leader to take the business forward," the company said.
Murrells will be available for a period of transitional support until the end of December 2025, it added.
Non-executive chair Mark Allen has been appointed executive chair. Hilton Foods said he has "significant" food industry, consumer goods and public company experience and will provide "strong executive leadership of the business" while the board considers CEO succession.
The announcement came just over a month after shares in Hilton Foods tumbled as it warned that profit progression in the next financial year would be difficult.
In a trading statement in November, the company cited the emerging impact on demand from ongoing inflationary pressures and continued disruption at its smoked salmon business, Foppen.
"The group is in a strong financial position, and the board is confident in its long-term prospects," the company said on Tuesday.
"Although current trading remains challenging, the board's expectations for the financial year ended 28th December 2025 are in-line with the guidance given in the trading update of 11th November 2025."
Steve Murrells said: "Hilton Foods is a great business and I have been privileged to serve as its CEO. I'm particularly proud of the progress we have made in significantly expanding our international operations, most notably the expansion into Canada and Saudi Arabia."
At 1400 GMT, the shares were up 2% at 492.50p.
Broker Peel Hunt said it looked inevitable that there would be a change after the recent trading update.
"We expect Allen to focus on the basics, such as strong cost control and ensuring that the company is focused on the core fundamentals. He has a strong track record at Dairy Crest of addressing strategic issues with the sale of dairies to Muller, and of delivering for shareholders with the acquisition of the company by Saputo for £1bn," it said.
"The current rating shows a lack of confidence in delivery, in our view. This is an important first step in restoring shareholder value."
It has a 'hold' rating and 670p price target on the stock.