After ending Nottinghamshire's 22-year wait for a limited overs trophy in last month's Yorkshire Bank 40 final win over Glamorgan, Read believes the time is right to step aside in the shorter formats.
The 35-year-old former England international will stay on in charge for the LV= County Championship, where he believes his watered-down role can help revive his batting after a difficult season.
"My focus at the end of last season was on winning a one-day trophy and avoiding relegation so I felt the need to take a couple of weeks to reflect before considering a way forward for myself and the team," Read said in a statement.
"I demand a lot from myself and I wasn't happy with my batting in the Championship last season although I felt that I kept wicket to a high standard.
"I always thought that captaincy was something that I would take on for a few years before handing over reins. Stepping away from it in limited overs cricket is the start of me doing that.
"Stephen Fleming was incredibly helpful when I began to take on the role here and I will be similarly supportive to the new limited overs captain."
Nottinghamshire also hope to complete a deal to sign an overseas bowler and established batsman in the coming weeks.
"It's important to look forward to next season and to make plans for improvement and we felt that we needed some experienced additions, particularly when we're missing the likes of Alex Hales, Michael Lumb, Samit Patel and James Taylor," Read said.
"We've targeted some players with excellent track records and I'm confident that they can improve us."