"Joe has been an invaluable resource for me and all of us at Major League Baseball this year and has splendidly communicated with our on-field personnel, general managers and the umpires," said MLB Commissioner Bud Selig said in a statement.
"I understand his desire to pursue an opportunity in Los Angeles. Joe has been a life-long friend and I know that will continue in the future."
Torre, who played 18 seasons in the majors, managed the Dodgers from 2008-2010 following a 12-year stint as manager of the New York Yankees where he won the World Series four times.
"I have made this decision because of a unique chance to join a group that plans to bid for the Dodgers. After leaving the field, this job was an incredible experience," he said.
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