Tim Nielsen has stepped down as head coach of Australia after confirming that he will not be applying for the new position created by the Argus review.

Nielsen has served as head coach since 2007, winning nine out of 15 Test series and overseeing success in 17 of the 25 one-day series during his tenure.

However the decision to restructure Australia's team management based on recommendations of a comprehensive review led by Don Argus, which was called for after last winter's Ashes defeat to England, meant he would have to re-apply for an expanded role.

Having opted not to do so, Nielsen earned the praise of Cricket Australia CEO James Sutherland after signing off with a Test series victory over Sri Lanka.

"Tim has been national coach during a period in which we have had a long list of great champions leave the game and has been a strong support for new players coming into the side over that period," Sutherland said.

"I was delighted when he agreed to renew his contract last year and had encouraged him to apply for the new, expanded and redesigned Head Coach role that the CA Board approved last month after the tabling of the Australian Team Performance Review.

"However, I have spoken to Tim and understand and respect his decision to now begin a new chapter in his professional life.

"He has contributed greatly to Australian international cricket in roles as assistant national coach, head coach at the Centre of Excellence and during four years as national coach. We all wish him well in the future."

Sutherland said CA would move to appoint an interim, acting national coach for next month's tour of South Africa while recruiting a new head coach.

Nielsen has confirmed that he will be taking up a new role in Australian cricket, the details of which would be revealed soon.

He admitted to being frustrated with the way things had turned out, particularly given that some of the changes recommended by the Argus review had been put forward by the coach himself.

"It has been a tough month," Nielsen told reporters. "I feel as though through something totally independent and external to what I do, I feel as though my role has been changed and my job has been spilt to other applicants. I understand that, I can understand where they're coming from, we are trying to improve our sport.

"The only thing I'm a little disappointed in is that my role as Australian cricket coach doesn't just cover Test match cricket. We've maintained our No. 1 ranking in one-day cricket over the last four years while I've been here, we've improved our T20 cricket and made some dramatic changes there to play in the last World Cup final. I feel as though we're on the right track.

"All of this has been brought to a head by the fact we played a very good cricket side in England last year and they outplayed us and beat us, and that happens sometimes. For 15 years before it was Australia doing it to other teams, and they had to lick their wounds. Now we've had a look at how we're going to improve and move forward, and the result is this.

"I feel as though whoever is given the opportunity is going to get a group of players who are in form, who have had some success, and I hope by it happening now, the place is in a better position than it was, maybe three or four months ago when it all happened."

Justin Langer and Steve Rixon, who have served as assistant coaches under Nielsen, are among those touted to take charge for the tour of South Africa.