The 32-year-old, who is also ranked ninth among the world's leading ODI all-rounders, said he may return in time for the 2015 World Cup but in the meantime he wants to focus on adding to his 105 Tests.
"My reason for taking a break from the shorter forms of the game is primarily so that I can preserve my body and continue to represent the Black Caps in Test cricket," he said.
"I also believe a break now will give me the best possible chance to take up one-day cricket again in the next couple of years and, if all goes well, make the Black Caps World Cup team for 2015."
Vettori, who has played 272 one-day internationals and 28 international Twenty20s, stepped down as New Zealand captain earlier this year when the side were beaten semi-finalists at the last World Cup. New Zealand Cricket chief executive Justin Vaughan said he respected Vettori's decision to target Tests while keeping his options open for the future.
"Dan has been a great servant for a long time now and I believe this decision is not only in his best interest but also for the best interests of the Black Caps," Vaughan said.
"The fact that he has signalled a desire to play ODIs and Twenty20s in the future and possibly make a return when we co-host the ICC Cricket World Cup 2015 is great."
Vettori was the youngest player ever to represent New Zealand at the age of 18 -- taking 2-98 in his first innings against England in 1997 -- and is now one of only eight players to have more than 300 Test wickets and 3,000 runs.
His target is to be only the second player behind India's Kapil Dev to take 400 wickets and 4,000 runs. He already has 4,167 runs and 345 wickets.
