While there was success in the women's game in his time in charge when Sam Stosur won the US Open in 2011, Australia's long wait for another men's grand slam champion continues.
Wood said he wanted to take a break.
"It has been an incredible time," he said in a news release. "We have achieved so much. I think the platform has been established and it is now time for an intensified push to reinvigorate every element of Australian tennis."
Tennis Australia president Steve Healy paid tribute to Wood's "creative and progressive" leadership and said Tiley was his natural successor.
"Steve's departure will coincide with a renewed focus on strengthening the foundations of the sport throughout Australia," Healy said.
"Steve's legacy is that tennis is well-positioned commercially and structurally to take on these challenges."
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