Corcoran was banned for six months – with two months suspended – because of his role in the Bombers' supplements saga and would have been eligible to return to the club in February 2014.
Click here for our full coverage of the Essendon supplements scandal
However, the Bombers released a statement on Friday saying he had decided not to resume his position and would only be assisting with the transition to a new football boss.
"I took the general manager of football role to implement a succession plan and knowing in time I would help the club find the right person to succeed me," Corcoran said.
"Over the last couple of months I’ve had the opportunity to step away from everything, travel and reflect on a difficult year and I have decided that now is the right time for me to consider the next phase of my life.
"I’ve enjoyed my time working at Essendon with a number of highly professional and quality people. I wish the club every success in the future."
The Bombers also announced on Friday morning the vacant chief executive position would not be filled until further notice after an exhaustive interview process.
The board has decided to implement an "alternative strategy", with Xavier Campbell appointed chief operating officer, which will temporarily be the most senior executive position.
Interim chief executive Ray Gunston will finish on December 31 but has agreed to return to the club as required in January to help with the handover to Campbell.
Chairman Paul Little and finance director Paul Brasher will spend more time at the club to help recruit executive members and offer support.
Danny Corcoran speaking to reporters in French. Picture: AFL Media
Twitter: @AFL_Nathan
