Prasad, who has worked as the head of the junior national selection committee for 30 months, off late shared a cold relationship with the Board of Control for Cricket in India mandarins.
It has been learnt that Prasad cited personal reasons for stepping down and has also mentioned that he doesn't want to fall under the purview of 'Conflict of Interest'.
"It's still not clear but there are chances that he might be joining any IPL franchise and that's why he wanted to avoid a potential conflict of interest," a senior BCCI official said from Mumbai.
When acting president C K Khanna was asked about the resignation, he said: "I tried to convince him but it seems he has made up his mind. He has been one of the finest talent spotters and deserves due credit in selecting a world champion junior team."
Prasad, in 2016, was tipped to become the chairman of the senior selection committee, but BCCI decided to continue with him in the junior panel.
Interestingly, Prasad is only one among the six national selectors (3 juniors and 3 seniors) to have played more international matches than all senior selectors put together (33 Tests and 161 ODIs).
Recently, after the Indian junior team won the U-19 World Cup, the selection panel was not given any cash reward.
However, the senior selection panel and women's panel had been handsomely rewarded by BCCI after both the senior men's and women's team lost the finals of the Champions Trophy and World Cup respectively.
COA member Diana Edulji had gone on record saying "selectors were rewarded for selecting good team" -- a comment that had raised a few eyebrows as both teams lost their summit clashes.
However, many believe that Prasad had irked a senior office bearer and that is why the junior selection committee never got cash award after the World Cup triumph.
IMAGE: Venkatesh Prasad celebrates a wicket during a Test match against Sri Lanka in Kandy, in August 2001.
Photograph: Reuters
Want to learn from Dhoni, Bravo at CSK, says England pacer Wood
Was Sachin a genius?
How Dhoni is helping this youngster prepare for India debut
Check out IPL 2018 schedule
Why are brands not signing Prithvi or Shubman?