Newey committed his long-term future to Aston Martin in September 2024 after his departure from Red Bull sparked a bidding war for his services.
However, the man widely considered the greatest technical mastermind of his generation has since reportedly clashed with current Aston Martin team principal Andy Cowell over the direction of the team and its car design during a disappointing season.
Now, after speculation linked former Red Bull team principal Christian Horner with the Silverstone-based team, Aston Martin have announced a major reshuffle.
Newey, 66, will take charge of trackside operations next season, while Cowell has been given a new role as chief strategy officer to focus on the team's engine partnership with Honda.
Newey has played a significant role in 13 drivers' world championships and a dozen constructors' titles with Williams, McLaren and Red Bull but has never previously held the role of team principal.
"Over the last nine months, I have seen great individual talent within our team," said Newey, who began working as a managing technical partner at Aston Martin in March. "I'm looking forward to taking on this additional role as we put ourselves in the best possible position to compete in 2026."
Aston Martin are currently eighth out of 10 in the constructors' standings with two races to go this season, with Canadian billionaire Lawrence Stroll's ambitious project to make the team his son drives for the best in F1 yet to really take off.
"Both of these changes will ensure the team is best placed to play to their collective strengths," said team owner Stroll.