His departure follows a tumultuous year for the publisher, which has had to deal with the phone hacking scandal which led to the closure of the News of the World.
Despite launching a Sunday edition of The Sun last weekend, Murdoch has now relocated to New York, where he remains deputy chief operating officer.
Tom Mockridge, chief executive officer of News International, will continue in his post and will report to News Corporation president Chase Carey.
News Corporation chairman and chief executive Rupert Murdoch said: "We are all grateful for James' leadership at News International and across Europe and Asia, where he has made lasting contributions to the group's strategy in paid digital content and its efforts to improve and enhance governance programs."
James Murdoch said: "I deeply appreciate the dedication of my many talented colleagues at News International who work tirelessly to inform the public. I am confident about the tremendous momentum we have achieved under the leadership of my father and Tom Mockridge.
"With the successful launch of The Sun on Sunday and new business practices in place across all titles, News International is now in a strong position to build on its successes in the future."
