After a 12-year partnership, East Hampshire District Council and Havant Borough Council have decided to end their partnership and establish their own management teams.
The decision has been made so that the authorities can focus on their different strategic priorities and deliver outcomes for their communities more quickly.
Both of the councils said that the partnership has been very successful since it was created in 2009 and has delivered significant savings for both councils, as well as providing other benefits.
Commenting, Leader of East Hampshire District Council, Councillor Richard Millard said:
"We have worked as close partners because we have had a number of shared interests over the years, but now is the time to focus on our specific areas and really target our energy into delivering outcomes which benefit our specific communities.
"The management team and staff across both organisations have done an absolutely fantastic job and I look forward to continuing to work with them to deliver our priorities."
Leader of Havant Borough Council, Councillor Alex Rennie added:
"We have had a really successful partnership, but this is the right moment to move in our own directions.
"I would like to thank all the staff who have pulled out all the stops to deliver our shared priorities.
"I envisage that we will continue to work closely where there are tangible benefits for our communities."