The two-time US Open winner has led the Australian men's tennis team since October 2010, helping the nation back into the World Group for 2014 - and overseeing their play-off win over Uzbekistan in September that takes them back to the top tier for 2015.
Rafter will continue to captain the team into 2015 in conjuction with his new role, which starts on February 1, with no successor appointed.
The likely scenario would see Cup stalwart and two-time major winner Lleyton Hewitt ease into the captaincy as he is tipped to, with the South Australian likely to announce his retirement prior to the 2016 season.
Rafter said he will be charged with finding innovative methods to improve Australian tennis players.
Rafter said.
Tennis Australia president Steve Healy said Rafter's ascension to the performance role could be ground-breaking.
Healy said.
"That just exemplifies Pat Rafter the person and this great Australian's commitment to the sport of tennis."