A powerful and athletic No. 8, Rush was instrumental in the region's success in the subsequent years, winning the Anglo-Welsh EDF Cup and Amlin Challenge Cup in consecutive seasons.
A physical player throughout his career, Rush suffered a neck injury in the 2011/12 Heineken Cup quarter-final match against Leinster that forced him to retire from playing and take up a coaching post with the Blues.
Having recently become a father, he has now decided to leave his coaching post to develop a career in property development.
Speaking of his decision Rush said: "I enjoyed a wonderful time playing for the Blues and winning the two cups was a real highlight.
"I also learnt a great deal from my year working as part of the coaching team at the Blues.
"However, I feel now is the right time for me to step away from the game after being involved with professional rugby for 16 years.
"I am eager to build a career in property development and have many projects that require my full commitment.
"I've had a wonderful time with Cardiff Blues and would like to thank all those involved for their support since I arrived in Wales in 2005."
Cardiff Blues Chairman Peter Thomas added: "There is no doubting that Xavier Rush made a huge contribution to Cardiff Blues since arriving from New Zealand in 2005.
"He was an incredibly physical and powerful player that would always put the team on the front foot.
"On behalf of everyone at Cardiff Blues I would like to thank him for his contribution and we wish him and his young family well for the future. He will always be welcome back at the Arms Park"