The team confirmed the move on its Web site. Lemaire is expected to remain part of the organization's front office.
Lemaire coached New Jersey from 1993-94 through the 1997-98 season, a tenure that included the 1995 Stanley Cup title. He coached Minnesota for eight seasons before returning to New Jersey last July.
The Devils won the NHL's Atlantic Division with a 48-27-7 record this season but were upset in five games in the first round of the playoffs by the Philadelphia Flyers. After the series, Devils officials said they expected Lemaire to return as coach.
He leaves the bench as the team's all-time leader in coaching games (460) and victories (247).
Lemaire, 64, also coached Montreal for parts of two seasons and has an overall coaching record of 588-441-184. He won the Jack Adams Award as the top coach in the NHL twice. As a player, he was on eight Stanley Cup winning teams with Montreal and was inducted in the Hockey Hall of Fame in 1984.