The move follows the recent departure of DDB Melbourne head Chris Bayman who has since been replaced by ex-Rapp Collins executive Andrew Little.
Rather than replace Blampied with another recruit, his longstanding partner at DDB Australia, Nick Cleaver will assume total responsibility for the local operation.
Together the pair have built the agency into a formidable creative powerhouse, producing award-winning work for McDonald's, Wrigley's and Volkswagen.
Blampied was DDB Australia's group head for the last four years.
He plans to return to a strategic role with the launch of his own consultancy, with DDB as one of his clients.
"I have decided it is time to move on," Blampied said.
"The business has changed dramatically over the last couple of years. You are either adding value as a cog in a machine or you add value to the cogs, as a consultant. I have been running one of Australia's most amazing machines for the last eight years. I am now more interested in helping other business engines run better."
Cleaver was confident DDB's recent new appointments would carry the agency forward in Blampied's absence. "We have a tremendously strong management team at DDB, one which has an extraordinary length of tenure and depth of talent," Cleaver said.
"With the changes we've made recently in the Melbourne office and the addition to the management line-up in Sydney of Amanda King, Jay Furby, Karl Mather and Jeff Sanders, we look forward to a great year in 2003."