MySpace co-founder Chris DeWolfe is stepping down as CEO “in the near future” and “by mutual agreement” his contract will not be renewed with parent company News Corp, according to a release. DeWolfe will remain with MySpace in an advisory capacity and continue to serve on the board of MySpace China.

While no immediate replacement has been named, All Things Digital cites sources claiming former Facebook COO Owen Van Natta is high on the list.

The move to replace DeWolfe could come in response to MySpace losing ground to Facebook, the global social networking leader, despite MySpace claiming more registered users in the US.

DeWolfe said in a statement, “In a little under six years we’ve grown MySpace from a small operation with seven people to a very profitable business with over 1,600 employees. It’s been one of the best experiences of my life and we’re proud of, and grateful to, the team of talented people who helped us along the way.”

[Via CNET]