Moody was a firm favourite to take over when current Australia coach John Buchanan steps down after the World Cup, but on Saturday he announced he was not interested in the position.
Currently coaching Sri Lanka, the 41-year-old has also been touted as a possible replacement for besieged England coach Duncan Fletcher after the World Cup, which starts in the West Indies in March.
But Moody, whose wife Helen is English, said he simply wanted to concentrate on Sri Lanka's World Cup campaign before making any decisions on his future.
"The timing was not right," Moody said.
"The speculation over my position wasn't doing us (Sri Lanka) any good, so I decided to clarify my intentions.
"I don't want to get in a situation where I am saying I want this job or that job."
However, Moody did leave the door wide open for a change after the World Cup.
"Let's just see what unfolds over the coming months," he said. "I wouldn't discount any opportunity.
"I may stay on with Sri Lanka or it could be somewhere else domestically or internationally."
The added travel commitments of the Australian position are also believed to have played a part in Moody's decision.
With Moody off the scene, former South Australian wicketkeeper Tim Nielsen is now expected to get the role.
Former Hockeyroos coach and first-class cricketer Ric Charlesworth is another who has expressed an interest, while current Indian coach Greg Chappell has also been linked with the position.
Dav Whatmore and Bennett King, coaching Bangladesh and the West Indies respectively, are other possibles.