The organisation said former Norwegian Prime Minister Thorbjoern Jagland, 64, would remain as a committee member,
but gave no reason for its decision to demote him.
However the renowned diplomat had drawn sharp criticism for awarding the Nobel to Liu Xiaobo, the jailed Chinese dissident, in 2010.
Kaci Kullmann Five, a former leader of Norway's ruling Conservative Party, will take over as chairman.
Ms Five, who has been on the committee since 2003, denied any concession to Beijing, saying: "I wholeheartedly supported the award to Liu Xiaobo."
Four years on, Nobel Prize winner Liu Xiaobo still unable to collect prize from Chinese prison 10 Oct 2014
She said: "
The committee chooses a leader every year. This year is a new committee. Jagland has been a good leader for six years."
However Asle Sveen, a historian and Nobel expert, said China might interpret Mr Jagland's removal as a semi-apology for the prize to Mr Liu.
"For Beijing, the change of committee chair can be interpreted as a sign that its pressure is paying off," said Mr Sveen.
"This can be interpreted as an attempt by the rightist government [of Norway] to exert more political control over the committee than has been customary."
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