One-day skipper Daniel Vettori has replaced Stephen Fleming as captain of the New Zealand Test team.
Vettori (left) has been backed by Fleming
Fleming, 34, who also announced his retirement from one-day cricket, led the Test team to 28 wins and 25 draws in 80 matches over 10 years.
"I'm fully committed to New Zealand but feel the time is right for me to retire from the one-day game," he said.
"I would have wished to remain Test captain, but I can understand why the selectors prefer to have one captain."
Fleming has played 104 Tests and taken part in more limited-overs internationals as a captain than any other cricketer, guiding New Zealand to 98 wins in 218 games and victory in the 2000 ICC Knockout tournament, later re-named as the Champions Trophy.
In total, Fleming played 280 one-day matches, scoring 8,037 runs at an average of 32.4 - the highest of any New Zealand batsman.
Spin-bowler Vettori, 28, had already been named as skipper of the one-day and Twenty20 sides but will now take charge of the Test team when the Black Caps begin their tour of South Africa in October.
"I hold Vettori in high regard and will support him fully in his transition as Test captain
"The tour to South Africa will be a real challenge. No New Zealand team has ever won a Test series there and I am looking forward to the tour, " added Fleming.
Fleming has played 104 Tests for New Zealand
"I shall continue playing Tests as long as I have the desire and skills required to contribute. However, it is likely that the coming New Zealand summer will be my last home series."
New Zealand Cricket chief executive Justin Vaughan paid tribute to Fleming's many years of service, describing him as the country's "greatest ever captain".
He continued: "It will obviously be a major step for Stephen to play in a non-captaincy role. For him to accept the selectors' decision graciously and to remain committeed to New Zealand cricket is a true measure of his character," Vaughan commented.
"True leadership is more than just the title of captain. Stephen is a true professional. He cares about the team and I am sure he will be a big help to Daniel and remain a leader within the Black Caps [squad]."
He added: "Stephen was an outstanding captain and his legacy in the role sets a high standard for Daniel.
"I am sure Daniel will rise to the challenge and will bring his own particular skills and style to the role. We wish him all the very best."