Wayne Pivac will be replaced by Warren Gatland.
Next year's Six Nations and Rugby World Cup will likely be taken over by Gatland.
The Welsh Rugby Union had a poor autumn campaign which included a loss to Georgia.
After the Rugby World Cup, Pivac became the new coach.
Wales only won three games in the last year of the 60-year-old's reign.
Gatland has been Wales' coach for 12 years and has won three Grand Slams, as well as guiding Wales to the semi-Finals of the World Cup in 2011.
He took Wales to the top of World Rugby's rankings for the first time after a 14- match winning streak.
Gatland will go back to Wales before Christmas.
The three year tenure of Pivac saw Wales slip to ninth in the rankings after winning 13 games and losing 20.
Wales lost to Italy in the Six Nations and Georgia in the Georgia Championship last month.
He won a Six Nations title and a Test victory in South Africa.
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