“The cricketing legend Brian Lara will be our head coach for the upcoming #IPL seasons,” the team tweeted.
Moody had led Hyderabad through a “much cherished journey”, the team said in a tweet praising his time at the helm.
Lara, who has not commented on the announcement, bagged a number of batting records during his illustrious 26-year international career.
The 53-year old made the highest individual innings Test score with 400 not out against England in 2004.
He held the record for career Test runs until he was overtaken by India’s Sachin Tendulkar in 2008.
His 501 not out against Durham for Warwickshire in 1994 remains the highest first-class cricket score.
Hyderabad finished eighth in this year’s expanded 10-team IPL competition under Kiwi skipper Kane Williamson.
Debutants Gujarat Kings won the final at home in front of a record cricket crowd of nearly 105,000.