The 34-year-old Browne, who was expected to lead Barbados in the Antigua Independence Festival this weekend, retired on Tuesday night, the chairman of Barbados selector Joel Garner confirmed.
Giving personal and work-related reasons, Browne submitted a letter to the Barbados Cricket Association (BCA) on Tuesday, saying he was retiring from the game in full.
This will mean Barbados will have to find a new captain for the Antigua tournament. "I had a long talk with Courtney on Monday night and he informed me of his intentions," said Garner, a West Indies fast bowling legend and former Barbados captain.
"Courtney was an outstanding leader and he worked well with the other players. It's a tough spot to fill."
Browne's finest moment came in September 2004 when he and Ian Bradshaw engaged in a match-winning partnership as the West Indies beat England by two wickets in London to win the International Cricket Council's Champions Trophy.
It was the West Indies' first major international tournament win since the 1979 World Cup. Browne's decision comes just over a week after Barbados lost the KFC Cup One-Day Tournament to Guyana.
He first played for Barbados in 1990 and has been a constant member of the team ever since.
He first played for the West Indies against Australia in 1995 was in and out of the team over the ten-year period. His last test match was against Pakistan in Jamaica in June this year.
He played 20 test matches and made 387 runs with a highest score of 68 against Pakistan in Barbados earlier this year.
He also held 79 catches and made 25 stumpings. He also made 46 appearances in one-day internationals for the West Indies.
Overall in his career, he played 139 first-class matches, made 4,914 runs, held 439 catches and made 47 stumpings.
He first took over the captaincy of Barbados in 1995 and was the most successful captain in captain in the island's history.