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His departure brings to an end a 30-year association with Ulster after he helped the Irish province win the European Cup in 1999, Celtic Cup in 2003 and Celtic League three years later.
Former Ireland centre Bell moved into coaching at Campbell College in Belfast and became Ulster’s assistant coach after a spell as elite development officer.
He joined Gloucester Rugby in 2015 and had stints with Glasgow Warriors and Worcester Warriors before returning to Ulster in 2022 as defence coach.
Ulster say that the 50-year-old has been released from his contract “to facilitate his transition into the new role”.
It has been a difficult season for Ulster and Richie Murphy’s side sit ninth in the United Rugby Championship table, having conceded 232 points in 10 matches.
Ulster also conceded 163 points in four Investec Champions Cup Pool matches but progressed to the last-16 with victory over Exeter Chiefs.
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