The move is a bid to prolong his career and see him through to the 2015 Rugby World Cup in England. This may be a fairly optimistic aim - the 31-year-old has taken his fair share of knocks over an illustrious 11 year career which has left his body battered.
By taking a sabbatical it is hoped he will be able to freshen up and last another two-and-a-half years in the black jersey.
Many have questioned McCaw's ability to continue to play at the top level, saying he is now past his best and has been surpassed by another youngster across the Tasman as the world's best openside flanker.
However, if McCaw's recent performances in the Rugby Championship are anything to go by, this is far from the case. He has played some of the best rugby of his career over the past month.
He may no longer have quite the same impact at the breakdown as he did in his younger years. He is still capable of snaffling the ball from his unsuspecting foe, but this is no longer the sole focus of his game - he has developed into an all round player.
He is now a strong ball runner, a tough defender and an option at lineout time. There have been few openside flankers in the history of the game that can claim to have mastered all of these skills, and this is really what separates McCaw from the rest.
McCaw's leadership skills, too, will continue to be of great value to the All Blacks as they look to blood a handful of new players.
Of course, the likes of Kieran Read, Keven Mealamu and Conrad Smith could be called upon to lead the side. But none carry the same degree of mana, and none have the same experience in the role.
If he was to carry on in this way through to 2015, McCaw would undoubtedly boost the All Blacks' chances of becoming the first country to successfully defend the Rugby World Cup.
In saying this, it is important we don't keep McCaw just for his iconic status.
While he has been a great player and continues to be one, the time will come when he is surpassed by another. Should that happen before the 2015 World Cup then it may well be that the All Blacks will have to have another, possibly Sam Cane, filling the No. 7 jersey.
To already be planning his inclusion in the team for 2015 is dangerous thinking - it must be ensured that when the time comes McCaw really does deserve his place.
Either way, the man deserves his break. He has been a loyal servant to his country since his debut in 2001, winning everything there is to win in the game.
If this is enough to see him through another three years of top class rugby, there will be few New Zealanders who would object.
