"I have given this a lot of thought and have discussed things through with my wife and family and believe this is the right decision for me," Krige said in a statement on Tuesday.
"I just feel that I am at a stage in my life where I would like to concentrate on the Stormers and Western Province and would like to spend more time at home with my family."
Krige captained the Springboks for the first time on his debut against Italy in 1999, leading the team to a record 101-0 victory, but only took over as regular skipper in 2002.
The Springboks have endured a difficult time since, suffering record defeats by England (53-3), Scotland (21-5), France (30-10), and New Zealand (52-16), and being beset by problems off the field.
A pre-World Cup training camp last August was disrupted by allegations of racism within the squad.
Following the tournament, in which South Africa lost 29-9 to New Zealand in the quarter-finals, the game was also shaken by revelations of an extreme military-style training camp during which naked players were crammed in a pit overnight.
Krige, who made 39 Test appearances despite a succession of injury problems that dogged his career, has a contract to play provincial rugby until the end of the 2004 season.
"I am still enjoying my rugby and remain totally committed and focused on giving my all to the Stormers and Western Province this season," he said.
"I have thoroughly enjoyed playing for the Springboks and it has been a dream come true to play in the green and gold and to have captained the team was an incredible experience.
"I have been privileged to play at that level with some world greats and I want to thank them for making my job as captain a memorable one."
Krige's retirement completes a quartet of changes at the top of South African rugby following the resignation of team coach Rudolf Straeuli and managing director Rian Oberholzer and ousting of president Silas Nkanunu at last month's annual general meeting.
