Ross Taylor has opted to take a break from international cricket and is to be replaced as New Zealand captain by Brendon McCullum across all forms of the game.
McCullum was initially only expected to take over the limited-overs sides, with Taylor staying on as skipper of the Test team.
Taylor decided that he was not interested in a reduced role and will take some time away from the game, just 18 months after being made Black Caps captain.
New Zealand Cricket boss David White admitted that the situation was not ideal.
He said: "We regret that Ross Taylor has declined the opportunity, therefore McCullum has been appointed as Black Caps captain for all three forms of the game.
"He thought about it long and hard and he said that he would like a break to spend time with his family and we've agreed to that and we respect it.
"It's not ideal and we would be a stronger team with Ross Taylor in it."
Taylor scored 142 and 74 in his last two Test innings but has come under increasing pressure after losing 10 out of 14 one-day internationals this year.