The Australian, who was involved in the ball-tampering row in the Oval Test between England and Pakistan, said he would not be on the England and Wales Cricket Board (ECB) reserve panel for next season.
The ECB, who have had the New South Wales native on their list on two previous occasions, said in a statement Monday: "The England and Wales Cricket Board has been informed by Darrell Hair that he is unable to accept their offer to be a member of the ECB reserve umpires list for the forthcoming season.
"The ECB acknowledge Mr Hair's contributions in the previous two seasons as a reserve umpire."
During last summer's Oval Test, Hair and fellow umpire Billy Doctrove decided the touring side had tampered with the ball and awarded England five penalty runs and a change of ball.
They then decided to award a forfeit for the first time in Test history after Pakistan had initially refused to take the field following a break.
Soon afterwards, Hair offered to resign in return for $500,000 - a revelation communicated by him to the ICC via email but subsequently put in the public domain by the world governing body.
Hair has not stood in a Test match since but did make did officiate in the recent ICC World Cricket League Division One final between Kenya and Scotland in Nairobi.