The 68-year-old former test wicketkeeper has headed up the four-man selection committee since 2014 having previously served on the panel for three years under John Inverarity.
"We can confirm that Rod Marsh has decided not to continue on in his role as national selector once his contract expires in June, 2017," a spokesman for Cricket Australia said.
"At this stage no decision has been made on a replacement."
The next Ashes series will be in 2017-18 in Australia.
Under Marsh's chairmanship of the panel, Australia lost the 2015 Ashes series in England but won the 50-overs World Cup on home soil in the same year and held the number one ranking in test cricket for six months earlier this year.
(Editing by Greg Stutchbury)
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