Thiel will continue to serve on the board until the company's annual shareholder meeting, Meta announced in a press release.
"It has been a privilege to work with one of the great entrepreneurs of our time. Mark Zuckerberg's intelligence, energy, and conscientiousness are tremendous. His talents will serve Meta well as he leads the company into a new era," Thiel said.
The New York Times first reported the role departure on Monday, with Meta confirming the news hours later. According to the report, Thiel is stepping down to focus on helping elect candidates who will advance former president Donald Trump's policies in the US mid-term elections.
Thiel, the billionaire co-founder of PayPal and early investor in Meta, had been on Meta's board since 2015. Beyond his capacity in those roles and support for Trump, Thiel is also known for funding a high-profile legal case by wrestler Hulk Hogan against Gawker Media in 2016.
"Peter is truly an original thinker who you can bring your hardest problems and get unique suggestions. He has served on our board for almost two decades, and we've always known that at some point he would devote his time to other interests," said Mark Zuckerberg, Meta founder and CEO.