Ange Postecoglou has turned down the opportunity to become the first man to coach the Socceroos at two World Cup finals.
The 52-year-old announced on Wednesday that he was standing down as national team coach, a week after ensuring that Australia would qualify for a fourth successive World Cup following a 3-1 victory over Honduras.
Football Federation Australia will now begin the search for a new coach.
"After a great deal of thought and soul searching I've decided that the journey for me ends as Socceroos coach," Postecoglou said at a media conference in Sydney on Wednesday.
"As I've said many times, it's been the biggest privilege of my life and it's probably not the ending I'd envisaged when we started - but at the same time knowing that it's the right time for me and the right decision."