Following last week’s announcement of a near £10m investment in the club from Brighton & Hove Albion owner Tony Bloom, Budge believes she has “done what I set out to achieve”.
In a club statement, she added: “This is something I have thought long and hard about. Having discussed this with the board, I feel now is the right time to confirm that I intend to step down later this year.
“When I first got involved with the Foundation of Hearts in 2013, I could not have envisaged the journey it would take me on.
“Initially, the aim was to stabilize the club before even thinking of growth. Now, 12 years later, as I look at where the club stands, I can allow myself to feel a sense of pride at what we have achieved.”
Expressing his “gratitude”, Hearts chief executive Andrew McKinlay said: “It cannot be overstated just how much Ann has done for Heart of Midlothian.”
Meanwhile, Mallon said: “Ann will leave a remarkable legacy when she departs the club and we are extremely fortunate to have had 12 years of her knowledge and experience at the helm of Hearts.
“In particular, her participation during the birth of the Foundation of Hearts can never be downplayed. Neither can the instrumental role she played in saving the club from the abyss and taking it back up to the top end of Scottish football.”
Hearts missed out on a top-six finish in the Premiership last season, finishing seventh, and have since appointed Derek McInnes, previously of top-flight rivals Kilmarnock, as their new head coach.
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