Kumble's original contract expired with the team's Champions Trophy campaign, but the former captain was tipped to get an extension after enjoying a successful run during his year in charge.
"While the Cricket Advisory Committee (CAC) had endorsed an extension to his tenure as head coach, Anil Kumble has decided not to continue as the coach," the Board of Control for Cricket in India (BCCI) said in a statement.
Last year the BCCI formed the CAC, comprising former players Sachin Tendulkar, Sourav Ganguly and VVS Laxman, who chose Kumble for the job.
