Shane Warne has retired from first-class cricket after agreeing with Hampshire that he will not return to the county club this summer. Pressures of growing business activities, the Indian Premier League (IPL) and a desire to spend more time with his family means that the former Australia wrist-spin bowler can no longer commit to the Rose Bowl.

"My eight years involved with Hampshire have been a wonderful experience. Memories that will last with me forever and likewise the friendships that have been formed at the club," Warne said.

"I would like to take this opportunity to thank Rod Bransgrove, Paul Terry and Tim Tremlett for their ongoing support and the opportunity to captain the club, and I wish them all the best for the coming season.

"Unfortunately I am retiring from all first-class cricket but will participate in the IPL with the Jaipur franchise as captain and coach.

"This was not an easy decision to make but due to some exciting business opportunities and wanting to spend more time with my children, I had to make this call."

Rod Bransgrove, the Hampshire chairman, told The Times that the decision reached this week had been amicable and he spoke glowingly of Warne's contribution since his first season in 2008. Dimitri Mascarenhas, who will miss two weeks in May to play in the IPL, has been appointed the new club captain.

"Hampshire Cricket has been hugely privileged to have enjoyed the unstinting loyalty of this living legend since 2000," Bransgrove said. "The most effective and entertaining bowler of all time, Shane Warne was also a brilliant leader and strategist.

"As our captain, his influence was instrumental in the development of Hampshire into one of the country's top sides and he enriched the game wherever he played.

"I know this will be a major disappointment to many fans of both Hampshire and Shane but, after much discussion and soul-searching, it has become clear to both of us, that Shane can no longer make the commitment required to continue to lead Hampshire.

"His many other business and charitable activities, together with his strong desire to share quality time with his beloved children, makes further extended periods away from home unmanageable at this stage of his life.

"After the commitment and loyalty he has shown to this club over the past few years, I can only wish him all the success and happiness he deserves.

"I am sure that all our supporters will join us in, firstly, thanking Shane for his dedication and commitment and, secondly, wishing him and his family the best of wishes for the next phase of his life. Warnie will be sorely missed, never forgotten."

Warne is more committed than most to the IPL even though he is not, relatively speaking, one of the bigger wage earners. As captain and coach of the Jaipur-based Rajasthan Royals he could not drift in and out of the tournament which runs from April 18 to June 1, later than initially expected.

He was also due to miss the subsequent Twenty20 Cup in England and had delayed his arrival until as late as the end of July. Hampshire knew that Warne would be wholehearted on his arrival and that his spin could be decisive in the final weeks of the season, but they also wanted clarity on the leadership issue.

Warne, 38, believes that exposure to the IPL may help to develop his interests outside cricket in one of the biggest and fastest growing commercial markets in the world. He has not played over the winter having stepped down from all cricket in Australia at the end of the Ashes whitewash in January last year.

His place in the pantheon of the game is assured with 1,319 first-class wickets at an average of 26.11. He also made a huge impression on Hampshire at all levels; earlier this year Michael Carberry attributed his emergence as a potential England batsman to Warne's insistence that the side play to win at all times.

Paul Terry, the Hampshire team manager, said he was disappointed but not surprised by Warne's decision.

"He has been fantastic for the club with his incredible enthusiasm, drive and skill as captain," Terry said. "He will be missed considerably on the field as there has never been anyone better but most importantly he will leave behind a host of friends that he has made through his kindness, generosity and loyalty.

"He will be missed, but certainly never forgotten, and I personally thank him for the experience and wish him fantastic success in all his future endeavours."