Haddin played 25 matches for Australia in the shortest form of the game, the last against Sri Lanka in Kandy last month.
"I thoroughly enjoy Twenty20 cricket and have taken great pride from playing all three forms of the game for Australia," the 33-year-old said in a statement.
"However I feel the time is now right for me to concentrate on Test and ODI cricket," Haddin was quoted as saying in a Cricket Australia statement.
"I remain extremely determined to play cricket for Australia and believe this decision will help achieve this." The right-handed batsman, who bats at the top of the order in the shorter versions of the game, would continue to play domestic Twenty20 as captain of the Sydney Sixers and with the Kolkata Knight Riders in the Indian Premier League, he said.
