Stephen Larkham will leave the Brumbies at the end of the 2017 Super Rugby season after signing a new three-year deal with the Australian Rugby Union.
The move will bring to an end Larkham's dual role as head coach of the Brumbies and attack coach for Michael Cheika's Wallabies, which he started doing in February 2015.
The former Australian fly-half's new deal means he will be involved with the national team until the next World Cup in Japan in 2019.
"I have really enjoyed working with this current Wallaby group, as well as the national coaching group," Larkham said on Friday.
"I hope we can continue to grow to be where we know we can be, and I’m looking forward to being part of that."
Larkham has led the Brumbies to the Super Rugby play-offs in each of his three seasons at the helm in Canberra and said he is committed to helping the club transition to a new coach for 2018.
"It will be very tough to leave but I will continue to be based in Canberra and involved with the Brumbies. I will be totally committed to having a successful 2017 with the Brumbies, and support the club in its recruitment of a new Head Coach for 2018 and beyond," he said.
Australia coach Michael Cheika said: "Stephen is on his way to becoming a world class coach and I know he is very passionate about his coaching and the Wallaby Jersey.
"Having coached both last year (a Super Rugby team and the Wallabies) I know it’s a difficult task and I’m pleased for Stephen that he has sorted out his future and obviously, I personally am pleased that he’s going to continue with us beyond this year."