The 31-year-old, who has battled back from injury and hip surgery over the past two years, has decided the time is right to finish her competitive cycling career.
Shanks, who managed her injury throughout her 2012 Olympic campaign, had surgery last year with the intent of returning for the Commonwealth Games in Glasgow this year and the Olympics in Rio in 2016.
However, she says that she can no longer manage the physical and mental demands to get back to the top of her sport.
"I have been playing sport my entire life and have had an incredible journey. I have cherished every single part of it - the hard work, the training, the people, the travel, the failures and obviously the successes. I love representing my family, Otago and my country," Shanks said.
"I have a real passion for what I do and have always committed 100 percent but I have to listen to my body when enough is enough.
"If I can't do something 100 percent physically and mentally then it's time to find a new challenge and start a new adventure."
