The news comes as director general Mark Thompson is expected to announce that Children's BBC is to move to Manchester as part of the BBC's cost-cutting plan in the run-up to the Royal Charter review.
Shuttleworth denied the reason he is leaving is because of the division relocating to Manchester. He said that the move might not happen for five years, although he has stressed he is interested in the corporation's creative talent pool.
"CBBC London's greatest resource is the people that work there. Now is the perfect time for the next generation of independent companies to tap into that and ensure the tradition of quality programming for children in the UK is maintained," he said.
Shuttleworth will leave CBeebies on its third birthday, February 5 2005, to launch his new London-based company called Handle and Spout.
Shuttleworth has spent more than 12 years at the corporation, starting as a researcher for 'The Archers' before joining the chldren's department as a "broom cupboard" runner.
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