The chief executive of Sandwell Council has left her £152,174 a year post with immediate effect, the Express & Star can reveal.

Dr Allison Fraser, aged 57, has left the council three year ahead of her retirement age.

It is understood that she will receive an undisclosed six figure pay off before she is eligible to claim her pension in three years’ time.

The news comes shortly after council leader Councillor Darren Cooper announced he would be axing senior managers to help make the £27 million savings the authority has to find by the end of the financial year.

He has launched a “root and branch” review of the council’s management structure, with view a to “cutting from the top down”.

Dr Fraser said she is leaving the council to “pursue new challenges” after being at the helm for four years. Sandwell Council today confirmed Dr Fraser officially left the employment of Sandwell Council yesterday.

Council leader Councillor Darren Cooper said: “I am sorry to see Allison leave. Her commitment to the authority and the people of Sandwell has been excellent.”

Dr Fraser,  who became chief executive in 2006 after filling the post on an interim basis for six months said: “I am confident that I am leaving the council in a strong position to successfully face the serious challenges ahead for local government.”

Dr Fraser picked up a salary of £152,174 in 2009/10 including fees and allowances. It is understood her pay off will be less than her salary. The council now plans to take on an interim chief executive.