The Heat said that after lengthy discussions, Hayden, 40, had opted not to return for a final series after signing as their marquee player for last season's inaugural T20 Big Bash League.
Hayden, who retired from Test cricket in 2009, played for the Chennai Super Kings in the Indian Premier League in 2010. He took a sabbatical from cricket before returning to play for the Brisbane team in 2011-12.
"I will be pursuing my initial intention and agreement with the Heat of moving from the pitch to the boardroom, where I hope to continue to make a meaningful contribution to the Big Bash League and the Brisbane Heat," Hayden said in a statement.
"I also plan to be very active in promoting and supporting the Brisbane Heat both on and off the field, and to contribute to the long-term success of the franchise."
Hayden said cricket would remain a significant part of his life.
"Whilst closing the final chapter was difficult it feels great to be more actively involved in supporting and nurturing our next generation, especially now with my children," he said.
Mathew Hayden scored 8,625 runs in 103 Tests for his country with 30 centuries, at an average of more than 50. He also played 161 one-day internationals.