Darren Lehmann will resign as Australia head coach after the fourth Test against South Africa.
The announcement comes in the wake of the ball-tampering scandal that has resulted in Steve Smith, David Warner and Cameron Bancroft receiving lengthy bans from international and domestic state cricket.
Cricket Australia CEO, James Sutherland, insisted Lehmann had no involvement in the incident and had said he would remain in charge of the national team.
But Lehmann says it now "is the right time to step away" and urged the Australian public to forgive the three players involved in the saga.
The trio arrived in Australia on Thursday and gave emotional apologies in front of the media.
A tearful Smith took full responsibility for the ball-tampering plan and says he "failed" as a captain.
"As many who sit in this room will know, life on the road means a lot of time away from loved ones and, after speaking to my family, it is the right time to step away," Lehmann said.
"Despite telling media yesterday that I'm not resigning, after reviewing Steve and Cameron's hurting it's only fair that I make this decision.
"This will allow Cricket Australia to complete a full review into the culture of the team and allow them to implement changes to regain the trust of the Australian public.
"This is the right thing for Australian cricket.
"Saying goodbye to the players was the toughest thing I've ever had to do.
"I hope the team rebuilds and the Australian public can forgive the young men and get behind the XI."
Lehmann broke his silence on the incident on Thursday, insisting that the trio involved were not "bad people" and should be given a second chance.
When asked about his proudest achievement as head coach, Lehmann said: "I would say the way we dealt with Phillip Hughes's passing. We're only playing a game."