Former England skipper Michael Vaughan described Dhoni as one of the greatest captains to have ever led a cricket team.
"Even one of the greatest captains of all time decides enough is enough ... Well done @msdhoni on an incredible leadership term," Vaughan wrote on his Twitter page.
Australia's former captain Michael Clarke, who himself quit shorter format after winning 2015 World Cup, showered accolades on Dhoni, saying he still has lot to offer to Indian cricket.
"I think @msdhoni will go down as one of India's most successful captains. He is a great man and still has a lot to offer Indian cricket," Clarke wrote on his Twitter page.
Clarke felt Test skipper Virat Kohli should be the natural choice to lead India in limited overs also.
"It is now time for @imVkohli to captain all three forms in my opinion. He is a superstar and is ready for the challenge," Clarke further wrote.
Meanwhile, Cricket Australia uploaded a video on its Twitter handle to hail Dhoni after the BCCI made the announcement.