The gallery's chair Penny Fowler announced Ms Quinlan would be leaving the national institution next month to take up a new position as the chief executive of the Arts Centre Melbourne.

"Karen has steered the gallery through a period of change and renewed ambition since she took on the role of director four years ago," Ms Fowler said.

"Her big-picture vision has had a marked impact on the gallery's national profile, access and visitation."

Ms Quinlan took up the role of National Portrait Gallery director in 2018. Prior to that, she was the director of the Bendigo Art Gallery for 18 years. The change in jobs saw her move from one of the country's oldest art galleries - Bendigo was established in 1887 - to one of its youngest.

But Ms Quinlan said what the National Portrait Gallery offered was unique in Australia.

"With a remarkable collection of artworks that capture the essence and spirit of Australia and all Australians, and the increased popularity of its exhibition, education and public programs, the gallery's future looks bright," Ms Quinlan said.

"I thank the gallery board, foundation, the gallery's donors and my incredible colleagues who have wholeheartedly supported my vision."

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Ms Fowler extended her congratulations to Ms Quinlan, for what is considered a significant role in the arts.

She also said the legacy that the outgoing director would leave is one that will be felt for some time to come.

"Karen is leaving the gallery in great shape. The recent international exhibition Shakespeare to Winehouse from the National Portrait Gallery in London is the most successful ticketed exhibition ever staged at the gallery," Ms Fowler said.

"In addition, new online and exhibition programs developed during the pandemic mean more people than ever can access the gallery programs and collections."

As well as hosting blockbuster exhibitions during her time as director, Ms Quinlan also saw the gallery launch the Darling Portrait Prize and continued the successful National Photographic Portrait Prize.

Once this year's iterations of these prizes finish exhibiting in October, the gallery will follow them up with Who Are You: Australian Portraiture, a collaboration between the National Portrait Gallery and the National Gallery of Victoria, one of the most comprehensive explorations of Australian identity and the portraiture genre.

When the director's departure was announced, Minister for the Arts Tony Burke said Canberra's loss would be Melbourne's gain.

"I look forward to working with her in her new role, particularly as we develop the Albanese Labor Government's landmark National Cultural Policy," he said.

"I was pleased that Karen recently agreed to join one of the review panels we announced to help shape our National Cultural Policy, with a focus on strong institutions."

Interim arrangements, and the commencement of the recruitment process to fill the role of director will be announced shortly.

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