Border, who played 156 Tests and 273 one-day internationals, and who also serves on the boards of Queensland Cricket and Cricket Australia, was a selector between 1998 and 2005 before rejoining the NSP in June this year.
''I loved working as a selector and this influenced me to accept the invitation to rejoin this year. But my various commitments are far heavier than I had expected back in mid-year and I dont think it is appropriate to do what is a really important job if I am not able to give it the full attention it deserves,'' Border was quoted as saying in a Cricket Australia release here today.
''I am really passionate and absolutely committed to making a continuing contribution to cricket through my board work and through my involvement in the CA committee that will decide the next national coach,'' he added.
Cricket Australia (CA) Chairman Creagh O'Connor said he had accepted Borders decision with regret but respected his decision.
''Allan has been a tireless, selfless and insightful servant of Australian cricket and those of us who have had the good fortune to work alongside him are most grateful for his continuing contribution to the game,'' he said.
Mr O'Connor said the Board would seek views from NSP chairman Andrew Hilditch and from CA management before discussing next steps when it meets for its next scheduled meeting at the end of this week.