Woodman, who joined the club in 2009, has spent four years at Adams Park, but will now "seek a new challenge elsewhere".
"I've had four really enjoyable years here and it's now time for me to seek a new challenge elsewhere," he told reporters at a press conference.
"Working with lots of talented young players and helping them come through and emerge as key Premiership names has been something I have been very proud of. I have also learned a lot from Dai Young this season from his experience as a director of rugby.
"When Dai joined two years ago, we mutually agreed I would stay on for two more years, while he assisted all coaching areas, and then he would take full control of the forwards, so it's now time for me to move on."
Woodman began his coaching career in Australia.