Finch has led Australia’s ODI and Twenty20 teams since 2018.
The 35-year-old opening batter has played 145 ODIs and scored 5,401 runs at an average of 39.13.
He led Australia to their first T20 World Cup title in 2021 and will still lead the side at the upcoming T20 World Cup on home soil in October.
“It has been a fantastic ride with some incredible memories,” said Finch.
“I have been extremely fortunate to be a part of some brilliant one-day sides. Equally, I have been blessed by all those I have played with and the many people behind the scenes.
“It is time now to give a new leader the best possible opportunity to prepare for and win the next World Cup. I thank all of those who have helped and supported my journey to this point.”
There were questions over Finch’s place in the side because of his recent form in ODIs, as he averages just 13 in 2022.
He registered his fifth duck of the year in the second ODI against New Zealand on Thursday.
Australia have already won the three-match ODI series after taking an unassailable 2-0 lead.
Finch took over the white-ball captaincy from Steve Smith following the ball-tampering scandal during Australia’s Test series against South Africa.
He remains one of the most popular T20 cricketers around the world, having played for nine different franchises in the India Premier League (IPL) and has represented Melbourne Renegades in Australia’s Big Bash League (BBL) since the competition began in 2011.
“On behalf of Australian cricket, I would like to congratulate Aaron on his vast contribution as captain of the Australian Men’s ODI team and as a wonderful exponent of the 50-over format,” said Nick Hockley, Cricket Australia’s chief executive.
“Aaron is an enormously gifted and determined player whose outstanding deeds with the bat have been matched by his strong and inspiring leadership.
“His decision to step aside from the ODI captaincy now is typical of his selfless approach to the game.
“I’m delighted Aaron will lead the Australian team into the forthcoming ICC Men’s T20 World Cup where his leadership, experience and tactical nous will be integral to the defence of our T20 World Cup title on home soil.” (BBC Sport)