New Zealand captain Tana Umaga has announced his retirement from international rugby, saying he wants to spend more time with his family.

The 32-year-old said he would continue playing at provincial and club level but the time had come for him to step down from international competitions.

"I sacrificed a lot of the time with my family to wear the black jersey and I did that willingly and always wanted to do it. But now I believe it's time for me to sacrifice something and give back to my family," he told a news conference.

Umaga played 74 tests for New Zealand between 1997 and 2005, including 21 as skipper.

In his final season in charge, the dreadlocked Umaga led the All Blacks to a series win over the British and Irish Lions, victory in the Tri-nations championship and a "grand slam" of wins against Wales, Ireland, England and Scotland.

Umaga will be remembered on these shores as one half of the duo that executed that ‘spear tackle’ on Lions and Ireland captain Brian O’Driscoll minutes into the first Test.

The centre came under fierce criticism for his part in the incident which left O’Driscoll with a dislocated shoulder and severely curtailed tour, but his apology and insistence that the tackle was not premeditated has since been accepted by the Leinster centre.

Umaga made his test debut against Fiji in 1997 as a winger but was later moved to the centres and earned a reputation as a powerful, skilful runner and fierce defender.

He appeared in two Rugby World Cups, in 1999 and 2003, and won a fair play award from the International Olympic Committee when he came to the aid of Welsh captain Colin Charvis, who was knocked unconscious in a test match in 2003.

All Blacks coach Graham Henry said Umaga would be remembered as one of New Zealand's greatest players.

"This day is a special day. This is when one of the great All Blacks is retiring from the game," Henry said. "I was disappointed with the decision but I think it's the right decision and I support him in that decision... he's going to be a big loss for New Zealand rugby and shoes to full."

Umaga said he told Henry his intention to retire in June and but was persuaded to stay on until the "grand slam" tour in November. He announced his retirement to the All Blacks team after the final match of the tour against Scotland.

Umaga is still contracted to the New Zealand Rugby Union to be eligible for international selection but chairman Jock Hobbs said he had been granted a special exemption because of his long service and contribution to the game.

"Tana has represented both the All Blacks and New Zealand rugby with dignity and with a strong sense of the team's responsibility to its fans and partners," he said.

"He has been an inspiration to many people both on and off the field."

Umaga became the first New Zealander of Samoan heritage to captain the All Blacks in 2004 when Henry took over as coach and turned them into the number one ranked side in the world.

"Being appointed captain of the All Blacks was a huge honour," he said. "A lot of the work we have been doing is around preparing the All Blacks for the future and I feel privileged to have played a part in that."