Gibbes was considered a prime contender to replace outgoing coach Jason Holland when he takes up an All Blacks coaching role next year.
But Gibbes has opted to 'head home' to Te Awamutu and end his four years with the Hurricanes.
"My family is the most important thing to me," he said.
"I've been thinking about this for a while now, so as hard as the decision was, it became a simple one. I'm ready for a new direction, and I'm looking forward to being home with my family.
"I've thoroughly enjoyed my time in Wellington and at the 'Canes. The Hurricanes is an awesome organization and I feel privileged for the time I've had here."
But before moving on, there is still a job to be done in the final weeks of the 2023 DHL Super Rugby Pacific competition.
"My focus is to get this job done with this competition, and that's all I'm thinking about."
Gibbes said he thought the Hurricanes would be an even better side in the future.
"I believe the 'Canes have some of the strongest players and set-up in the competition, and I know they'll find some great coaches to continue the work that we've done for the last few years."
Hurricanes chief executive Avan Lee said Gibbes would be missed.
"Gibbo has been fantastic for us over the last four years and added value to our coaching group and organization. He is fiercely determined, loyal, committed and has a genuine passion for coaching.
"We will miss him a lot but completely understand his reasoning for wanting to be closer to his family. We wish him all the very best for the future."