Sir Ivan, who was appointed to the job by David Cameron in 2013, had been expected to play a key role in Brexit talks, which is expected to start within months.
The government says Sir Ivan had quit early so a successor could be in place before negotiations start.
Labour said Sir Ivan's departure was deeply worrying and Prime Minister, Theresa May, must be prepared to listen to difficult truths about the likely complexity of the Brexit process.
The diplomat was due to leave his post in November.
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