Southee said he would "fade out" a happy man after taking two wickets in his 107th and final Test, a 423-run drubbing of England in Hamilton.
The 36-year-old swing bowler then revealed he would also play no more limited-overs matches for his country, ending a record-breaking 17 years across all three formats.
"It's time for these young guys," Southee said.
"We've seen a number of them come through in the last couple of years and I'm excited to sit back and watch them continue to take this team forward.
"I've lived it for so long. So yeah, I'll be done."
Southee's 391 wickets is second only to Richard Hadlee in the New Zealand Test cricket history books.
But Southee stands alone for total New Zealand international wickets, with 776 since his debut in 2008.
He is the only player globally to take more than 300 wickets in Tests, 200 in one-day internationals (221) and 100 in Twenty20 internationals (164), with the T20 figure the most by any player.
Southee said he would pursue playing opportunities in professional T20 leagues but had decided a Test at his home ground of Seddon Park was the best way to sign off for New Zealand.
"Test cricket's the pinnacle for me and it's pretty special to win by 400-odd runs against a brilliant opposition," he said.
"It's a nice way to fade out after what's been an incredible journey.
"Every opportunity to play for New Zealand has been a special moment. It's been a great ride and I've got 17 years of memories which I'll take with me."
Southee said he would remember with particular fondness a "golden period" for New Zealand in which he shared the new ball with Trent Boult, supported by aggressive first-change exponent Neil Wagner.
The three seamers were a lethal combined force for a decade, culminating in winning the World Test Championship final against India at Lord's in 2021.
"To be a part of that was pretty special," Southee said.
"And to play alongside those two and form a pretty good friendship which will go long beyond the game as well, is, I guess, the most satisfying part of all."
Southee said he won't though miss the draining schedule of international cricket.
"I'll certainly enjoy a Christmas at home with the family," he said.
"They've been few and far between over the last how many years."
