Kylie and Terry Part Ways After 25 Years
However British reports that the parting meant Minogue was retiring from music have been dismissed.
Blamey, who has managed Minogue's career since the release of Locomotion in 1987, officially ended his partnership with the star on New Year's Eve.
Sources say Minogue made the decision in September, with the pair working together amicably until the end of the celebrations of her 25th anniversary in music.
"Kylie has decided to pull back slightly from the pressures of her career and devote more time to herself and her acting career," Blamey said. "This is not to say she will be retiring from music, just taking a bit of a break."
Blamey will "pursue other exciting business opportunities and spend more time with my family. As we reach this fork in the road after a wonderful 25 years working together, we do so amicably, wishing each other nothing but the very best for each other's continued success."
Minogue renewed her love of acting with a critically-acclaimed role in last year's indie flick Holy Motors.
"I had no idea Holy Motors would do this for me," Minogue told News Limited in October. "It's made me a little bit hungry for more ..."
Minogue also had a small role in another cult film, Jack and Diane, out now on DVD/Blu-ray in the US and has been linked to British musical romcom Walking on Sunshine, which goes into production this year.
While the news marks an end of an era - and one of the longest-running and most successful partnerships in pop music - a spokeswoman for Minogue said she is "definitely not retiring from music."
Blamey received an an award for his management skills in London in November - Minogue gave a speech with read in part "You can only imagine how much we've been through together: The highs, lows and plateaus, the good the bad and the ugly. But throughout it all Terry's commitment, support and guidance has remained constant."
Minogue's spokeswoman also denied British media reports the split was provoked by a falling out between Blamey and Minogue's father Ron over the direction of the star's career.
UPDATE FROM KYLIE:
By Cameron Adams