Gustavsson and Football Australia agreed on Thursday that the Swede's contract would not be extended after he failed to guide Australia beyond the group stage at the Paris Olympics.
FA chief executive James Johnson is due to touch down in Australia on Saturday after Gustavsson oversaw the Matildas' worst showing at a Games in 24 years.
Coach Tony Gustavsson is departing following the Matildas' early Olympic exit. (Joel Carrett/AAP PHOTOS)
Johnson will then begin the hunt for a new coach, with an appointment expected in the next couple of months.
His decision is critical, with the 2026 Asian Cup on the horizon along with a Women's World Cup the year after.
"It'll be quite good to have a changing of the guard at this point. Because this (Olympics) is going to be a massive disappointment," Kellond-Knight told AAP.
"I'm really curious to see who the candidates will be, because this is a really important time for the team."
The chance to win the 2026 Asian Cup on home soil will undoubtedly attract top-line interest but the Matildas, who haven't won a major trophy since 2010, are expected to enter a period of transition.
There is time to experiment before the 2027 Brazil World Cup and the 2028 Los Angeles Olympics, but it remains to be seen how many of the Matildas' golden generation take part.
Goalkeeper Lydia Williams has retired from international football while Sam Kerr, Steph Catley, Caitlin Foord, Katrina Gorry, Alanna Kennedy, Clare Polkinghorne, Tameka Yallop are in or near their 30s.
Sam Kerr, Emily van Egmond, Alanna Kennedy and Caitlin Foord have been part of a golden generation. (Darren England/AAP PHOTOS)
Australia will need regeneration to ensure group-stage exits do not become the status quo.
"Looking forward to the next four-year cycle, some players will step away from the team, and it's a great opportunity to kind of rebirth the Matildas, in a way," the 33-year-old Kellond-Knight said.
"Tony started that - he blooded a fair few players that have had quite a bit of experience in the four years. But this might be a really great opportunity.
"So they need to consider a coach that's capable of doing that, capable of bringing through younger players and exposing them to that experience.
"They won't simply be handed a successful team and told, 'Here, produce something'."
Kellond-Knight, whose international appearances have been restricted by injuries in recent years, has played under Tom Sermanni, Hesterine de Reus, Alen Stajcic, Ante Milicic and Gustavsson across her decorated international career.
She noted a coach needed to "be a good fit with the cultural nuances of Aussies" but also uphold professional standards, along with being strong tactically and technically.
Matildas veteran Elise Kellond-Knight wants a new coach immersed in the local football scene. (Darren Pateman/AAP PHOTOS)
It remains to be seen whether FA would look for another high-profile foreign coach, given Gustavsson never relocated to Australia and lacked knowledge of the local game prior to taking the role.
Johnson would oversee the process, an FA spokeswoman said, despite the chief executive's contract expiring later this year.
Joe Montemurro, who only recently signed with French club Lyon, is the outstanding Australian candidate, while Sydney FC coach Ante Juric is probably the best local option.
Kellond-Knight noted the importance of a coach having international experience, balanced with a willingness to be based locally and stay involved in the domestic football scene.
She also believed there had been an "over-emphasis" on players moving overseas - often to lower-level European competitions that weren't necessarily better than the A-League Women.
"It would be great if we had a coach that was more engaged with what is happening in Australia, because the next generation are playing here in Australia, the majority of them," she said.
"So we need a coach that's got a keen eye on the ones coming through and being able to develop them, and not just purely focused on the players playing at big clubs."
Football Australia CEO James Johnson must begin the search for a new Matildas coach. (Dan Himbrechts/AAP PHOTOS)
The new Matildas coach will also need to develop a style of play to unlock Australia's potential, and empower the likes of Mary Fowler and Kyra Cooney-Cross to lead the team.
"They've kind of still moved in the shadow of some of the other players, the leaders, and played a supporting role," Kellond-Knight said.
"I think it's time that they finally step out of the shadow."
