Royles will start his new role in September, by which time he will have been in his current position for almost four years. The recruitment process to fill the vacant NHS Employers chief executive role will start next week.
NHS Confederation chief executive Rob Webster praised Royles for helping to create "strong teams dedicated to working with employers and supporting them to put patients first".
Royles added that he felt privileged to lead such a "unique organisation".
"I am proud of the team I have assembled, and our contribution to developing a workforce focused on patients," he said. "During my time here, I have made it a priority to value partnership working as a central part of everything we do, and I am confident that this approach will continue to be successful in coming years.”
He added that he is aiming to helping his new employer "build a talented, highly-engaged and empowered workforce."
“I am looking forward to working with such a dynamic and forward-looking executive team to help make Leeds Teaching Hospital the best place to work and the best place to receive care," he said.
Julian Hartley, chief executive of Leeds Teaching Hospitals NHS Trust, said he was pleased to have found an "exceptional candidate for an extremely challenging role".
"His [Royles'] national reputation, successful track record and breadth of experience will complement our organisation perfectly and bring invaluable expertise at a challenging but very rewarding time. I am confident that Dean will be a huge asset to the Trust," he said.
Rolyes' first HR leadership role within the NHS was as HR director for the East Midlands Ambulance Service in 2001. He has since become one of the most respected HR leaders in the UK and was voted the top HR Most Influential practitioner for the past two years.
Royles is a visiting fellow at Newcastle Business School, chair of the board of the Chartered Institute of Personnel and Development and a chartered fellow for the same organisation. He is married with four children and lives in Sheffield.