The 48-year-old has spent five seasons at Sixways, initially joining from Gloucester Rugby in a backroom role before then taking charge of the side.
Hogg will make way for Alan Solomons in the summer, however, and the former Scotland international admits that the time is right to move on as Worcester are currently second bottom of the Premiership table.
"With the appointment of Alan Solomons as director of rugby, now is the right time to take up my next challenge in coaching," he said in a statement.
"Worcester have experienced some turbulent times since I arrived five seasons ago, but I feel proud to have navigated the club through this difficult and volatile period. I am looking forward to focusing on the next stage of my rugby journey."
Worcester head to Exeter Chiefs for their next outing on Saturday afternoon.