The 49-year-old stunned the sport when quitting as England boss 10 months after leading the nation to World Cup glory in November 2003.
He is poised to join the Saints' youth team set-up after this summer's Lions tour of New Zealand, but insists that will not be the end of his rugby career.
"Deep down I think I'll come back to rugby at some stage," Woodward told The Observer.
"I wasn't turning my back on rugby union, just the opposite. I'd just stepped down from England, so there's no way I'd have felt comfortable taking another international team back to Twickenham.
"A lot of people have been putting two and two together, but really this is just an opportunity after the Lions to work with other sports for two years under no pressure, where I can make an impact - and the experience will make me a better rugby union coach."
As for what post he will look to claim on his return, Woodward added: "There are many wonderful jobs in world rugby."