The news was made public on Sunday evening, while the Chennai Super Kings vs Mumbai Indians game in Dubai was in progress, by the franchise, and came three days after Kohli had announced that he would be giving up the captaincy of India's T20I team at the end of the World Cup in October-November.
Kohli, who will turn 33 during the World Cup, became the regular captain at Royal Challengers in 2013; he has been a part of the franchise as a player since the inception of the IPL in 2008.
In the media statement, Kohli pointed out that it had not been an "easy decision" but that it was taken in the interests of the team. He also reiterated that he would remain with the team "until my retirement from the game of cricket".
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