The Edmonton native was the first to be appointed to the position, which was created after the 2010 Winter Olympics.
The IIHF hired Foley to oversee women's hockey after International Olympic Committee president Jacques Rogge said the sport needed to become more competitive.
Foley confirmed in an email to The Canadian Press that she left the job due to family reasons. Foley, her husband and young son are returning to Canada.
Her husband is a golf professional and has taken a job in the Vancouver area.
"Clint had a tremendous job offer and so we couldn't refuse it," Foley said.
Foley joined the IIHF on Dec. 1, 2010, after serving as assistant sport manager of hockey at the Winter Games in Vancouver and Whistler, B.C.
The IIHF will discuss the future of the job at council meetings later this month in Zurich, spokesman Szymon Szemberg said.