Sheeran, who has led the nation's oldest diocesan university for 14 years, will spend the first year after his departure on sabbatical.
Sheeran's tenure included the dorm fire that claimed the lives of three students in January 2000.
The 63-year-old says he's proudest of raising the school's academic standing.
He joked that like anyone leaving a job he wishes he could have "worked harder, traveled more, raised more money and made more NCAA finals."
Seton Hall University is 153 years old and has 9,500 students.
A search committee will find a successor.
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