Max Donnelly has stepped down as chairman of the Parramatta Eels, with former Westpac Institutional Bank senior executive and current Board member Sean McElduff announced as his replacement.

Donnelly will remain on the Eels board as one of the two leagues club-nominated Directors.

"When I became Parramatta Eels chairman in July 2016 my intention was always to oversee a smooth transition to a new chairman at the appropriate time. I am pleased to say that we have achieved that goal with the unanimous endorsement of Sean as our club's new chairman," Donnelly said.

"When I arrived at the club there were numerous issues and unresolved challenges that needed to be addressed and I am delighted to say that the vast majority of those are no longer factors or hurdles that will affect the club's progress moving forward. We have enacted constitutional reform through a new governance platform and we have financially stabilised the business.

"While we are all disappointed with the on-field performance in 2018, I am proud that we now have a Board and management team focused on addressing these issues strategically and with purpose."

Former Commonwealth Bank senior executive Colin Robertshaw has been named as the Deputy Chairman.