“I believe the way I can best serve the team moving forward is focusing on my performances on the field and getting back to my best, to continue taking wickets and helping New Zealand win Test matches.
“I wish Tom all the best in the role and he knows I’ll be there to support him on his journey, as he has done for me over the years.”
New Zealand head coach Gary Stead said of Southee: “He’s been a great servant of New Zealand Cricket over nearly 17 years playing on the international stage, and I’d like to acknowledge his humility in stepping down from the role as Test captain.
“It’s not easy giving up something you love, but Tim is a true team man and he’s made the decision with the team’s best interests at heart.
“He’s one of our greatest ever players and we still very much see him playing a part in our Test side moving forward.”
Since his debut in 2008, Southee has taken 382 wickets in 102 Tests for New Zealand and won six of his 14 matches as captain, with six losses and two draws.
He will return to the ranks in India for what will be a tough first assignment for Latham, who won four of his nine Tests in charge between 2020 and 2022.
The Black Caps then return home to face England in three Tests, starting in late November.