Long-standing McLaren boss Ron Dennis has parted company with the British Formula One team after losing a bitter boardroom dispute with his fellow shareholders.

The announcement on Tuesday evening brings to an end his 36-year stay with the team whom he spearheaded to a number of driver and constructors' championships. Dennis was also instrumental in Lewis Hamilton's grand prix career after signing him for McLaren in 2007.

Dennis, 69, last week failed in a High Court bid to stop the McLaren board from placing him on gardening leave until his contract expires in January.

But following lengthy discussions on Tuesday, Dennis has revealed he will be relinquishing his position as chairman and chief executive of one of the sport's most successful teams.

"I am disappointed that the representatives of TAG and Mumtalakat, the other main shareholders in McLaren, have forced through this decision to place me on gardening leave, despite the strong warnings from the rest of the management team about the potential consequences of their actions on the business," Dennis said in a statement released on Tuesday night.

"The grounds they have stated are entirely spurious; my management style is the same as it has always been and is one that has enabled McLaren to become an automotive and technology group that has won 20 Formula One world championships and grown into an £850 million a year business.

"Throughout that time I have worked closely with a series of talented colleagues to keep McLaren at the cutting edge of technology, to whom I will always be extremely grateful."

Dennis holds a 25 per cent stake in the McLaren Technology Group, but there has been rising tension with his Saudi-born business partner Mansour Ojjeh, who also holds 25 per cent of the business, with the remaining 50 per cent in the hands of Bahrain sovereign wealth fund Mumtalakat.

Dennis, who has been involved with McLaren since 1980, added: "Ultimately it has become clear to me through this process that neither TAG nor Mumtalakat share my vision for McLaren and its true growth potential.

"But my first concern is to the business I have built and to its 3,500 employees. I will continue to use my significant shareholding in both companies and my seats on both boards to protect the interests and value of McLaren and help shape its future."

Dennis stood down as McLaren team principal in 2009 but returned as chief executive five years later.

The Englishman oversaw Ayrton Senna and Alain Prost's historic tussle for the title as McLaren drivers in 1988 and 1989 before Mika Hakkinen clinched back-to-back championships with the Woking-based outfit in 1998 and 1999. Hamilton also won his first title in only his second year in the sport as a McLaren driver back in 2008.

But the British team's success has dried up in recent years, and their renewed relationship with Japanese engine manufacturer Honda has failed to provide a return to winning ways. Fernando Alonso was only 10th at the recent Japanese Grand Prix while his team-mate Jenson Button crossed the line in last position.

Dennis is viewed as one of the most influential and important figures in the Formula One paddock for the past four decades.

His departure from McLaren on Tuesday signals the end of an era for the sport. Speaking on Saturday, Bernie Ecclestone, the sport's 86-year-old chief executive, said: "We don't want to lose Ron.''

Martin Brundle, the Sky Sports pundit who raced under Dennis for McLaren in 1994, tweeted: "So The Ron has gone. Very mixed feelings and emotions on that but I guess you reap what you sow. A visionary, but has bruised too many folk."