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The 36-year-old Tasmanian, considered one of the world's best batsmen, however, made it clear that he was avaiable for selection as a player.
"I have resigned as captain of both the Test and one day teams," Ponting said at a press conference at the Sydney Cricket Ground.
"I will continue to play and I've made it very clear to selectors that I'm available for selection in both the one-day and Test teams.
"I have thought long and hard about what Australian cricket needs. Now is the right time for the next captain to assume the responsibility for both the Test and one-day teams," said Ponting, who has had a lean run with the bat and as captain in the last few months but for his century in the quarter-final against India in Ahmedabad.
He said that Australia's World Cup ouster had prompted his decision and insisted that he was not pressurised by Cricket Australia to give up the leadership role.
"I've had no tap on the shoulder from anyone. This is a decision wholly and solely from me. I thought the timing was spot on," Ponting said.
"The fact that we went out of the World Cup when we did was the main reason. Every decision I've ever made was always with Cricket Australia's thoughts at the front of my mind – it's always been about putting the team before me," he insisted.
He also endorsed Michael Clarke as his successor as captain.
"I think Michael (Clarke) was quite surprised. I had a really good chat to him. He's probably reasonably excited at the fact that I'm doing what I'm doing today," Ponting said.
"I fully endorse Michael Clarke as the next captain," he added.
Ponting has been the most successful captain for Australia and world cricket. Replacing Steve Waugh, he led Australia in 77 Test matches and won 48 out of them, the most by any skipper.
He also captained Australia in a record 228 ODIs and won 164, including two World Cups in 2003 and 2007.
"I'll have the opportunity over the next couple of days to reflect on where things are headed for me and certainly what direction I feel things are heading for the betterment of Australian cricket," Ponting said.
"I am very proud of what I've been able to do as a leader of the Australian cricket team and I have never ever taken any opportunity or any day for granted as the captain. When I first came into the team, I was lucky to have had a lot of experienced guys around to learn what international cricket was about," he said.
"It's a very prestigious job and one that comes with a lot of scrutiny and a lot of pressure but that is all part of being a leader in any walk of life," he added.
Ponting said even though he has relinquished captaincy he is always available for suggestion if needed.
"I still think I have a lot to offer the team as a player and as a leader, with the changing face of the team in the past two years we have got a lot of young faces around the team.
"Now that I've decided to make this change in my career I'll be sitting in the corner ... but I'm around for advice if needed," he said.
The Tasmanian also said that he wanted to make it sure that young players like Phillip Hughes, Steve Smiths and Usman Khawajas have experienced cricketers around them so that they can benefit from seniors.
"It's never been about how many runs I've scored or hundreds I've made. If I feel I can contribute with the bat, help the team win games of cricket and help young guys along the way, then I think I should still be playing," Ponting said.
Australia is scheduled to tour Bangladesh next month for a short three-match ODI series and Ponting hoped that he will be selected in the squad.
"I'm reasonably confident that I'll be picked for the touring team to Bangladesh," he said.
Former Australian skipper Kim Hughes said Ponting may follow in the footsteps of Indian batting maestro Sachin Tendulkar and improve as a player after relinquishing the captaincy.
"I still feel that he possibly thinks he's got another year or two good cricket left in him at either one-day or Test cricket and maybe without the burden of the captaincy that he can do justice to that," Hughes said.
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Riccy ponting was a great captain.By his captency aus won 2 worldcups.He was a good captain.why he resined?I hate clarke.I love ponting as aus captain.
Must be Dhoni. After Wednesday loss to Pakistan, on a lean patch, yet to contribute with his bat for the team, definiterly we are having another captain resigning.
Though the lack of Shane Warne and Mcgrath is cited for the poor captaincy record of Ponting, it must be remembered that he managed to lose an Ashes Series with both Warne and Mcgrath Playing under him. Mark Taylor was the last well behaved Captain Australia had !!
i see him as defeated gladiator,as a character his never say die attitude is admirable, his carelessness, brash attitude overall makes him a instinctive sportsman, ready for all challeneges...from a cool duck Steve waugh to ,,,a burning furnace ricky had his own style...All the BEST SIR@!
Ricky Ponting has proved himself and his worth by resigning from the captaincy of the Australia Cricket Team after a string of defeats attributing his resignation to knowing when the time is right, and doing it in the larger interest of the country, the team and lastly himself. When one looks at the changes in captaincy in every other cricket-playing nation, rarely and very rarely indeed, can it be remembered of an occasion when the team's captain has refrained from stepping down from the captaincy of the national team. But here in India once you are selected as the captain there seems no power on earth that can compel you to step down, and rarely would a captain relinquish his position despite a chain of disastrous performance and loss of one too many tournaments. The Media too attribute this to 'waiting for the right time' for the captain to make a comeback on his poor showing. It is about time our BCCI watch personal performances to decide when to boot the captain out of the team.
Irrespective of his behaviour vis-a-vis competitors, umpires or spectators, Ricky Ponting has been a great leader to his teammates and deserves kudos for the same. He epitomises the Aussie fighting spirit and pride. Hope he continues to gladden the spectators' hearts with his batting.
Very true sir.Thats the way to regard someone who departs after giving so much to the game.I wish the Indian authorities at Ahmedabad had given him a special prize on what was in all likelihood his last appearance there. Perhaps Pawar Saab hasnt forgiven him for the "push".