Lake has been coach of the Suns since March 2019 and led the club to its its first-ever finals campaign in 2020.
The Suns finished the 2021 NAB AFL Women's season with the wooden spoon after failing to win a match.
Due to family and work commitments, Lake has made the decision to step down and Suns CEO Mark Evans recognised him for his efforts.
"I'd like to thank David for his efforts during his two years at the club and particularly the role he played in establishing our AFLW team from scratch," Evans said.
