Bazeley will finish a four-year tenure when his contract ends following two home internationals against India in November.
The 54-year-old helped New Zealand qualify for their second senior men's World Cup campaign, where in June they drew 2-2 against Iran before losses to Egypt, 3-1, and Belgium, 5-1.
The All Whites, as the team are known, were the lowest-ranked team at the 48-nation tournament, listed at 86th.
Bazeley said he was disappointed to be leaving but accepted there were expectations on New Zealand to advance through the group phase for the first time.
"While I would have definitely been keen to be involved for the next cycle, I understand this is a football decision by New Zealand Football and ultimately we didn't get the results we wanted," Bazeley said.
"I believe we have been building something really exciting over the last four years with a young squad of players, so while I won't be involved with the team, I look forward to seeing how they continue to develop ahead of the next FIFA World Cup as this is a group I really believe in."
A former long-serving defender for Watford, English-born Bazeley has coached at various levels in New Zealand for 15 years, including a period as All Whites assistant coach before he replaced Danny Hay in the top job in 2022.
