Meadows-Klue will stay in the role until a successor is found, but is hoping to step down as chief executive in February next year. He will stay on with IAB UK as a non-executive director, as well as working as a consultant until the end of 2005.
Meadows-Klue said: "It has been a privilege to play a part in building our industry. The wider marketing community is now awakening to the real potential of online and the IAB has played an important role in achieving this."
He said he planned to spend more time working for his own marketing services company, Digital Strategy Consulting.
Richard Eyre, chairman of the IAB, said: "The online business in the UK owes a huge amount to Danny's vision, tenacity and infectious enthusiasm.
"He founded the IAB and has made an unparalleled contribution to the growth of this industry. I am delighted that he will remain on the board and will able to help us with the transition to a new CEO."
Prior to joining the IAB full time, Meadows-Klue was publisher of the Electronic Telegraph and a director at Hollinger New Media. He helped run the Telegraph's network of websites since January 1996.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .