Restructure and Redundancy

What are your options if you want to make a position in your business redundant but not the person? 

Q. We’d like to restructure our sales department but it would mean making a team leader position redundant. We don’t want to lose the person working in that role as they have invaluable knowledge about our business. We are trying to find another role for them. If we do offer them another role, do we have to offer them a redundancy package as well?