He will be travelling overseas for a new coaching role.
New Zealand-born Payne represented Ulster on 78 occasions and earned 20 caps for Ireland, before forming part of the Ulster coaching team for the past four seasons.
He will depart the club in the summer, after a decade of service to the province, to pursue coaching opportunities overseas.
On his time with Ulster, Payne, said:
“A big thank-you to the Ulster community, the fans, players and staff that have made my time here special.
“I will forever be grateful for the opportunities and experiences that we have shared, and I look forward to hopefully adding to those over these final few months.”
Head Coach, Dan McFarland, said:
“We all know how much Jared has given to Ulster, as a player, and as an important part of our coaching set-up since 2018.
“Jared has helped to shape who we are as a club over the past decade, and what we want to achieve, and his influence will continue to be felt in the years ahead. Jared’s desire to learn and improve himself as a coach has been impressive and it has been this spirit, in particular, that has made him a core part of our culture.
“On behalf of myself, the support staff, and the wider club, I would like to thank Jared for his significant contribution to Ulster, and he leaves with our best wishes for this next chapter.”