Blues coach Pat Lam has hinted he will not re-apply for his job.
The New Zealand Rugby Union announced on Wednesday it will be advertising the Blues head coaching role next week.
Mr Lam is in his fourth Super Rugby campaign as coach of the Auckland-based side, but has taken the Blues to the semifinals just once.
The team currently sit last in this year's competition, having won just one of their 10 games.
Blues chief executive Andy Dalton says the team's results simply have not been good enough and this has brought about the need for action.
Pat Lam can re-apply for the role, but he indicated that he and his family are exploring other options.
Mr Dalton says the job will be advertised next week and the recruitment process will take place in June and July.
Meanwhile, there are more injury worries for the Blues ahead of Friday's game against South African team the Lions in Auckland.
Rene Ranger has been ruled out of the match with a back injury, George Moala has a groin injury, while loose forward Chris Lowery is unavailable after being concussed in the side's last round loss to the Hurricanes.
The Blues are already missing All Blacks Kevan Mealamu, Tony Woodcock, Anthony Boric, Isaia Toeava and Jerome Kaino through injury.