Ross Taylor has been dumped as Black Caps skipper and Brendon McCullum will take over the role for the upcoming tour to South Africa.
Taylor was offered the Test captaincy but declined it and McCullum will now captain the side in all three formats.
New Zealand Cricket chief executive David White told a media conference in Auckland that Taylor will not tour South Africa and will take a break from the international game.
He is keen to return for the home series against England in March next year.
The announcement comes after a review of the recently completed tour of Sri Lanka.
Coach Mike Hesson proposed Taylor take the helm for the longer form of the game only and McCullum be in charge in the shorter formats, a move endorsed by White and the New Zealand Cricket board.
Taylor, 28, took over the captaincy in mid-2011 after Dan Vettori stepped down, winning the job ahead of McCullum.
New Zealand’s premier batsman, he had a starring role with innings of 142 and 74 in Colombo in November as the Black Caps beat Sri Lanka to end a five-Test losing streak and end a generally disappointing year on a high note.
But the gloss of that 167-run victory, and Taylor’s rise to a career-best eighth in the ICC batting rankings, has been overshadowed by the captaincy issue.
The 31-year-old McCullum hasn’t captained New Zealand at Test level, but has done so in a number of one-dayers and Twenty20 internationals.