Sydney racing has lost one of its highest profile race callers with Matthew Hill resigning from Sky Racing to return to his hometown of Melbourne.

The inaugural winner of the John Tapp race caller scholarship in 1999, Hill has accepted a new role as a sports commentator.

Brendan Parnell, chief operating officer for Sky Racing, said Hill was professional and dedicated and had excelled as their No. 1 Sydney race caller since the retirement of Ian Craig.

Hill will end his tenure after he calls the Coffs Harbour meeting on January 11 next year.

Sky Racing has begun a search for Hill's replacement.