Hay led the All Whites on 13 occasions after winning 34 caps following his debut against Oman in 1996.

The 32-year-old, who helped the Kiwis to the 1999 Confederations Cup in Mexico, will continue to play for New Zealand Football Championship outfit Waitakere United.

"It has been a very tough decision to make," said Hay. "Playing for my country is something that is, of course, very important to me. It has given me some of my highest highs in the game and it is a wrench to leave the team.

"The ultimate honour has been to captain the side. That little bit of cotton with the `C' on it is something that I wore with pride.

"To be honest, the captaincy is the thing that has keep me in international football. But with a World Cup campaign around the corner for the All Whites I would be doing (coach) Ricki Herbert and the boys a disservice if I kept playing because my heart wouldn't be in it."

Blackburn Rovers defender Ryan Nelsen is believed to be the leading candidate to succeed Hay.