WACA president Dennis Lillee said Moody, a former Australian international cricketer, will take over coaching Western Australia on July 1.
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Moody, who led Sri Lanka to the World Cup final where they lost to Australia last month, met with Sri Lankan cricket officials Monday to inform them that he would not be taking up their offer to continue coaching there.
In Colombo, Sri Lanka Cricket (SLC) confirmed that Moody was leaving at the end of his contract this month, for "personal and family commitments".
"Sri Lanka Cricket regrets that Tom Moody has to leave our services and (we) respect his decision," SLC said in a statement.
Moody was quoted in the cricket board release saying that parting company was a "difficult decision given the strong relationships built between Sri Lanka Cricket and myself."
"However, I would be more than happy to assist in whichever way I possibly can for the continuous success of Sri Lanka Cricket."
The board's spokesman, Samanth Algama, said Sri Lank