The 41-year-old is moving on in order to fulfill his coaching ambitions having stepped away from the training field last summer.
"I have had a very fulfilling and rewarding time at the club and it is now right for me to move on," said Jones, who is an ex-Wales captain.
"Whilst I have enjoyed my off-field role this season representing the Rugby Department on the Board of Directors and working with the Academy, Community, Performance Programmes and Commercial activities my real passion lies with coaching.
"I will be looking to get back into a role with more hands on coaching in the near future."
That move may alert clubs in Wales as Jones has a healthy coaching pedigree since retiring as a player for Cross Keys, Pontypridd, Ebbw Vale, Gloucester, Worcester and Doncaster.
Jones has spent seven years on the coaching staff with Sale, initially acting as forwards coach and then moving on to a head coach role under Philippe Saint Andre.
Together the pair guided Sale to a first-ever English Premiership crown in 2006, a year after winning the European Challenge Cup against French side Pau.
"Kingsley has been a wonderful servant to the club over the years," said Sale owner Brian Kennedy.
"It is down to Kingsley and Philippe Saint-Andre that they took on a group of players and turned them into Premiership Champions. It was the first time in our club's history that this had been achieved and Sale Sharks are the only club other than Leicester and Wasps to be English Champions since 1998.
"We will always be grateful for the loyalty, passion, experience and skills that Kingsley brought to this club. However we recognise and respect his desire to get back into coaching and realise that for him to do this effectively then now is the best time to depart."