Grace avoided specifics over his disappointment with BNZ but said: "Since the Olympics I've had numerous offers from other federations which I've turned down, including on the same day I resigned.
"In the right environment with a nation that respects me as a coach then yes, I would take it. I've already told the riders that. At the moment, I don't have that support or respect from Bike NZ.
"I'm not belittling the endurance riders, but five sprinters can deliver six Olympic medals while an investment of at least 10 endurance riders has a total outcome of four. So when I hear there is no budget for a sprint development programme or outside help ...
"I was shocked the decision-makers didn't even try. All the fun and success and learning is outweighed by the fact I can't work somewhere where I don't feel respected.
"The job is not finished and those guys are very capable of being Olympic champions in 2016. I never imagined I wouldn't be part of that. I've shed a few tears since Monday. Those riders are like sons to me and big brothers to our daughters. Regardless, they will ask my advice now and then and we will always remain good friends.
"What we had was unique, not just in New Zealand but throughout the world.
"But I'm not prepared to lead a programme that has a different strategic plan to what I think is needed ... some people may say I'm being foolish but I have to come home and sleep at night. I would definitely come back, but not in the current situation."
BNZ is leaning on a sports science approach, and high performance director Mark Elliott said velodromes in particular were highly controlled environments which supported that approach.
Grace joins other coaches Tim Carswell, Andy Reid and Ken Cools in leaving for various reasons, while endurance specialist Dayle Cheatley is now head coach. There has only been one replacement so far - via an internal promotion of Ryan Hollows for Cools in BMX - while BNZ has five sports scientists to analyse data and set programmes. Elliott said there was funding pressure forcing the women's programme to be slashed. An overseas coach would replace Grace, with no New Zealander remotely in his league.