The 38-year-old master of mayhem had already retired from ODIs in 2025 but has called time on his international T20 career as well as all forms of cricket for his state.
He will continue to play T20 franchise cricket, including for the Melbourne Stars in the upcoming Big Bash League.
Maxwell, who invented a smorgasbord of shots that others merely dream about, said on The Final Word podcast that there was "a small hope or discussion that I might have been able to potentially get a send-off game at the MCG"
Australia play England in the opening T20 international of five matches against the old foe on November 21 in Melbourne.
"But I can completely understand the direction (selectors are) going with this squad," he said
"There's going to be a lot of change, I suppose, over the next 12 to 24 months with the (2028) Olympics coming up."
Maxwell said he could understand why selectors wanted to take a look at young players to "make sure they're getting exposed to international pressure" outside of a BBL context.
Australia have done exactly that, going with 23-year-old Lachlan Shaw and fellow debutant Sam Harper for the T20 series.
Maxwell played with Australia at the T20 World Cup in India and Sri Lanka earlier this year and across his career line up in 130 T20 internationals, scoring 2897 runs at 28.97 and with a strike rate of 154.42.
He also took 51 wickets and 62 catches and posted a highest score of 145 not out against Sri Lanka in 2016.
It was fitting that he hit the winning runs for Australia against New Zealand in the T20 World Cup final in 2021.
"I'm grateful for the time I was able to play for my country," he said.
"If you had offered me that career when I first walked into the Vic change rooms in 2009-ish, I would have bitten your hand off.
"I'm extremely grateful to have played that much for my country and to hopefully inspire some kids who want to take the game up, to want to play differently and to be open and vulnerable and to not shy away and be themselves," Maxwell added.
"It was pretty incredible when even getting my first Test cap, well and truly before I was probably ready.
"It was pretty exciting and I'm glad they took a gamble on me and I'm glad I could, at different stages, repay the faith and be afforded the chance to play as much, for as far, as I did."
It was tougher for Maxwell to let his state teammates know about his decision.
"Post the last one-day game for Victoria, speaking to my teammates and letting them know that was going to be my last game for the state was probably harder than I thought it was going to be - got a little choked up," Maxwell said.
Maxwell also played seven Tests for Australia and 149 ODIs, playing in the 2015 and 2023 World Cup final wins.
His unbeaten 201 against Afghanistan in the 2023 World Cup to reach the semi-finals is regarded by pundits as the greatest ODI innings ever played.
Maxwell said not playing T20 cricket for Australia would give him "eight weeks of solid rehab again to make sure I'm strong and ready for for the BBL coming up".
"You start to let your mind drift towards that, and there is probably no other format ... where it's almost felt like home over the last 15 years," he said.