The singer began working with the famed manager in 2019.
"This was a mutual and amicable decision to part ways and the two remain close," a source tells ET.
Lovato joined Braun's SB Projects firm in 2019, after previously being managed by Phil McIntyre. She released two albums -- Dancing with the Devil… the Art of Starting Over and Holy Fvck -- while with Braun's firm.
Billboard was first to report the news.
As for why Braun is stepping out of the manager role for these major artists, a source with knowledge of the situation tells ET that all of his "clients are under contract and negotiations have been going on for several months as Scooter steps into his larger role as HYBE America CEO."
"People are spreading rumors based on what they know, but they are off," notes the source.
Earlier this month, reports surfaced that Bieber had parted ways with Braun. However, a source told ET at the time that this news was untrue.
"Justin and Scooter are still working together," the source said. "Justin is not taking meetings to look for new management. The two recently worked on something together."
ET's latest source notes, "Scooter’s team at SB Projects are still handling both Justin and Ariana as they work through what this new structure looks like."
Since news of the deal broke, Swift has blasted it, claiming that she wasn't told about Braun's purchase before it became public and was never given a chance to buy her music, an allegation that Borchetta has denied.
The deal is also what prompted the singer to rerecord her first six albums. She has released the "Taylor's Version" of Fearless, Red, and Speak Now, and is set to put out her version of 1989 on Oct. 27. She has yet to announce release plans for rerecords of her self-titled debut album, which came out in 2006, or Reputation, which was released in 2017.