"Over the last couple of weeks my level of performance hasn't been good enough," he admitted.
"My passion and love for the game hasn't changed but at the end of the day (the decision) was based on my results."
Ponting won more Tests as captain -- 48 -- than any other Australian and has the astonishing success rate of almost 72 percent as the country's one-day leader, winning 164 of his 228 games.
He had already called a halt on his captaincy of the Test and one-day team in March last year, but continued as a player.
In Image: Australia's Ricky Ponting greets his wife Rianna and daughter Matisse