 Chappell saw his India side win just one match at the World Cup |
India failed to qualify for the Super 8s after losing to Sri Lanka and Bangladesh in the group stage.
Chappell, whose contract expired at the end of May, said he was quitting for "family and personal reasons".
"I look forward to continuing my contact with India in the coming years and I wish Indian cricket much joy and success in the future," said Chappell.
The Board of Control for Cricket in India (BCCI) has not made any official announcement on the news, but it is holding a meeting on Friday and Saturday to review the World Cup campaign and still expects Chappell to attend.
Chappell came in for major criticism following India's World Cup exit but was keen to end his reign on a positive note.
"I am grateful to the players with whom I have worked for the challenges that they presented me with and which I tried to meet in a professional, methodical and interesting way in the interests of the team and the individual," he said.
"I would like to make special mention of my support staff without whom I would not have survived the rigours of the past 22 months.
"Ian Frazer and Greg King deserve special mention for their efforts as do John Gloster, S Ramakrishnan and Ramesh Mane.
"I am particularly grateful for the wonderful support of my family, especially my wife Judy, who has enjoyed the experience as much as I."
Chappell, who captained Australia in 48 Tests, was appointed as India coach in May 2005.
He had some notable successes, including a record-breaking run which saw India win 17 one-day internationals while chasing.
But there was also controversy and he had a long-running dispute with Sourav Ganguly when he was axed as captain after four months of Chappell's reign.
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