“I have decided not to go on,” the 45-year-old father of four and former world No. 1 told the Aftonbladet newspaper.
“It’s for purely personal reasons that I have taken this decision, I want to spend more time at home here with my children.”
Wilander, in his heyday in the 1980s, won three Davis Cup titles with Sweden, but he has been much less successful in his time as captain since 2003 with just a semi-final showing against the United States in 2007 to his credit.
The Swedes did, however, maintain their position in the 16-strong world group last month with a 3-2 win over Romania.
Favourite to replace Wilander is former world top ten player Thomas Engqvist.
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