Ferry has been embroiled in a race scandal after reportedly making racially insensitive remarks about Miami Heat small forward Luol Deng during a conference call, with the GM refuting the claims by stating that he was merely reading from a scouting report produced on the player.
"This afternoon, Danny Ferry requested, and I have approved, taking an indefinite leave of absence, effective immediately," read a statement from the franchise's CEO.
"This has been an incredibly difficult time for him and his family and it is my hope that this time away from the Hawks organisation allows him the privacy he needs to listen to the community, to learn about his mistakes, and to begin the long process of personal healing.
"As a human being, manager and friend, I wish him well as he undergoes this process."
Head coach Mike Budenholzer will now assume oversight of basketball operations at the Hawks.