The former British & Irish Lions fly-half, who has been working with the Top 14 side as an assistant coach since July 2013, is set to join up with the reigning Super Rugby champions from January 1.
O'Gara's contract had been due to run until 2019 in the French capital, however, Racing released a statement on Wednesday confirming the 40-year-old would be released from his contract at the end of December.
In the statement Racing added that they "did not want to deprive one of its faithful servants of a great opportunity".