The world-record wicket-taking leg-spinner said after Australia's nine-wicket first Test win over New Zealand in Christchurch on Sunday that he had bought a new home in Ocean Village, Southampton.
The 35-year-old champion bowler said he would move there with his family because of its logistical sense and its proximity to Spain, favoured as a future home by his family.
Warne, who has now taken 573 Test wickets, said he would continue playing for Australia and Victoria but would head to England to captain county side Hampshire next month, while he awaits the settlement of his new home.
Those close to Warne say his English base will have no bearing on him staying with the Australian Test team and living overseas will not compromise his performances.
CA and Cricket Victoria Monday gave their backing to Warne's overseas relocation, while his spinning mentor Terry Jenner said his new home would have no bearing on their working partnership.
"He's 35 years old and taken 570-odd Test wickets and if he thinks he needs to give me a call to discuss something then living in England makes no difference," Jenner said Monday.
"I go to England three times a year, so we'll probably catch up there. It's a professional age, mate, they've got to realise that."
CA said it was confident Warne would meet his obligations to the national side, as he would still attend training camps and travel with the team during the Australian summer, just as he would if he remained living in Melbourne.
"Shane's been talking about this for quite a while so this didn't come as a shock to us," said CA spokesman Peter Young.
"We've already talked about the technical requirements of his contract and he understands that as long as he's available to play for Victoria and Australia, then it's really academic where his address is. Good luck to him."
Warne has signed a four-year deal to play with Hampshire, which has also signed Test team-mate Simon Katich, and is understood to be considering embarking on a commentary career when he stops playing.
He and wife Simone and their three children might even live in Spain.
Warne said his wife would love to live in Spain, where the couple fled to in 2003 in the aftermath of Warne's much-publicised affair with a Melbourne stripper.
Warne's brother and manager Jason said the move to England had nothing to do with avoiding the media scrutiny he experienced in Australia.
"It's got nothing to do with the media attention he gets. He's got that ever since he bowled (former England batsman Mike) Gatting (in 1993), and it's the same in England as well," Jason Warne said.
"There's nothing untoward. He's not skipping the country and it's just a convenience thing. He spends most of his time in England now and because the guys travel so much, they're only in Australia for a few months of the year now. He's doing what's best for him."