Seedorf, 50, was announced as Corinthians' new manager on Monday after Fernando Diniz was dismissed last week.
The former Real Madrid, Ajax, and Milan great hadn't held a managerial role since leading the Cameroonian national team between 2018 and 2019, and had a technical role on the KNVB's supervisory board. Seedorf had a major role in the hiring of Xavi Hernandez as the new Netherlands manager.
The KNVB congratulated Seedorf on his new role but said it would review whether it was compatible with his supervisory board duties.
On Thursday, the KNVB confirmed that Seedorf had stepped down from the supervisory board.
"On Thursday afternoon, Clarence Seedorf and the Supervisory Board held extensive discussions about his new role and its potential implications for his position as a supervisory board member for professional football at the KNVB," a statement on the KNVB website said.
"During these discussions, all options and the various pros and cons were considered. Based on these discussions and his own deliberations, Clarence has decided to step down from his position as a supervisory board member with immediate effect."
Seedorf joined the supervisory board in June 2023 and worked closely with General Manager Nigel de Jong.
“Over the past few days, we have had open and constructive discussions about his new position and how it might be reconciled with his role as a board member at the KNVB," KNVB President Frank Paauw said.
"We have carefully weighed up all the pros and cons. We respect his decision and appreciate the responsible way he has handled this matter. We thank him for his commitment and dedication to Dutch football and wish him every success in this new challenge.”
Seedorf's first game in charge of Corinthians will be played against Vitoria on Tuesday, October 20th, at 02.00 CEST.