Sutter was the Devils' coach for two seasons, building a 97-56-11 regular-season record. But New Jersey was a combined 4-8 in the playoffs, including a first-round Game 7 loss to Carolina this year after the team had won the Atlantic Division title.
Sutter announced his decision to leave the Devils in a conference call from Red Deer in Alberta.
"It has to do with a lot of things back here in Red Deer," Sutter said. "There are circumstances that have occurred especially over the last year that have made it increasingly more difficult. I have to do the right thing and the right thing was to step back and evaluate everything and go through a process that I had to go through."
Sutter is president of the Red Deer Rebels of the Western Hockey League, a team he bought in 1999.
Even though he coached the Devils for just two seasons, Sutter is third on the team's all-time win list.
Celebrity Families of 2014 [PHOTOS]