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The 39-year-old has requested leave in the wake of a New Zealand Cricket World T20 campaign review, which recommended all coaching and support staff roles be advertised at the completion of their contract periods.
Tiffen will not join the White Ferns for their three-match Rose Bowl series beginning in Perth on February 22.
Tiffen said given the nature of the review it was in the team's best interests to remain behind when the team departs for Australia on Monday.
"I just want to do what's best for the team,' she said.
"The review was fairly confronting and challenging and I can't really imagine being in the right frame of mind to help this side during the upcoming Rose Bowl series.
"I love the players, I love the team and I love the job. But for everyone's sake, I think this is the best course of action at the moment."
NZC has appointed its high performance coach, Bob Carter, to act as the interim coach during her absence.
Head of high performance Bryan Stronach said NZC accepted Tiffen's leave request and would provide support for her during
what was clearly a stressful time.
"The high performance environment is an extremely challenging one and the most important thing we can do right now is make sure we support Haidee," he said.
Stronach said Tiffen would remain on her contract until its expiry date on July 31, and had been encouraged to reapply for the position.
Tiffen played 117 one-day internationals, two tests and nine twenty20 internationals for the White Ferns from 1999 to 2009. At the height of her career she was one of the best all-rounders in the women's game.