11th April 2018, 08:25 | International
The 48-year-old former Bradford Bulls and Great Britain forward has combined the Hawks role with his day job at the Rhinos for the last three years but has told the USRL that he does not wish to continue.
McDermott was appointed by the USRL in the summer of 2015 and successfully guided the Hawks through the 2017 Rugby League World Cup qualifiers with victories over Jamaica and Canada.
The Hawks lost all three group matches against Fiji, Italy and Papua New Guinea at last year's tournament.
McDermott's agreement with the USRL ran out at the end of the World Cup and he has informed the board of his decision to step down.
McDermott is Super League's longest-serving coach, having joined the Rhinos ahead of the 2011 season, and has guided them to four Grand Final triumphs, two Challenge Cups, a League Leaders' Shield and World Club Challenge.
His decision to stand down from his role with the Hawks leaves the USRL looking for a replacement for a Test match against Canada, which has been pencilled in as a curtain-raiser for England's clash with New Zealand in Colorado on Saturday, June 23.