McLoughlin originally joined Ulster Rugby on a two-year contract in June 2009 and his reign has seen the 199 Heineken Cup winners rekindle past glory by reaching two successive Heineken Cup quarter-finals, the second being the clash with Munster at the Thomond Park on Easter Sunday, 8 April.
"While we are not yet in a position to confirm who our Head Coach will be for next season, I can confirm that Brian will remain in a senior coaching position at the club, moving to work with Gary Longwell in our Academy on a permanent basis," said Humphreys.
"We are aiming to make Ulster Rugby a leading force in European rugby and to do that we need to develop our Academy system and elite player pathway. Brian has a proven record and a genuine interest in this area and this role offers him an opportunity to shape the future of Ulster Rugby.
There's no doubting what Brian has achieved in his tenure as Head Coach over the past two and a half years and we hope that there is more to come this season as we prepare for the Heineken Cup quarter-final."
Reponding to the annoucement the Brian McLaughlin said he knew his future was with Ulster.
"We all know the crucial role our overseas players play in our success, but it is imperative we foster local talent and my new role within the Academy will ensure that I continue to play a leading role in the development of both Ulster and Irish Rugby.
I've thoroughly enjoyed my two and a half seasons at the helm and take huge pride in the success we've had, however, with a Heineken Cup quarter-final and a push for a PRO12 playoff spot to come I'm very much focused on leading Ulster for the remainder of this season and am totally committed to achieving our goals of progression in both competitions."