Lehmann will stand down after the final Test of the four-match series against South Africa.
"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," ESPNcricinfo quoted Lehmann as saying.
"I hope the team rebuilds and the Australian public can forgive the young men and get behind the XI."
The 48-year-old's shocking decision comes after an emotional media address by Steve Smith and Cameron Bancroft earlier today in Sydney.
"Speaking to the players and saying goodbye is the toughest thing I have had to do," Lehmann said.
"It's been happening for a few days and you think you can keep going but the amount of abuse just takes it toll. They made a mistake. Speaking to my family, they've had enough of traveling 300 days. This was entirely my decision. I have been speaking to the hierarchy in the last couple of days," the coach said. (ANI)