The 34-year-old all-rounder had surgery on his left Achilles last month after New Zealand's exit from the Champions Trophy one-day tournament in England.
"I am very focused on my recovery from my recent surgery and will be working hard to get back onto the playing field over the next six-month period," Vettori said in a NZC statement.
"However, I feel that with my present injury situation it would be wrong for me to take a retainer contract.
"Given the time I'll need to spend out of the game with my recovery, and the level of uncertainty about when I may play again, it doesn't feel right that I take up a retainer contract this
