The Sydney-born 38-year-old batsman, who has won almost every honour in a Test career spanning 19 years, said he had advised Cricket Australia of his intention to step down as both captain and player.

"The upcoming Sydney Test will be my last for Australia should I be selected to play," Waugh told a packed news conference.

"My present form of fitness suggests I could play on. However, all good things must come to an end and I believe Sydney is a perfect place to finish."

Waugh, the twin brother of former Test batsman Mark Waugh, who has also recently retired, insisted the decision was unrelated to any hint from selectors that he would not be picked for a tour of India next season.

"Right now I'm playing consistently well. I want to go out on a high and I think Sydney is the right place.

"I didn't even tell my family about this decision until this morning."