Lancashire's longest serving player Glen Chapple will lead the side in 2009 after Stuart Law was not offered a new playing contract by the Red Rose county.
Law, who turns 40 next week, has spent the last six years at Old Trafford but his allegiance to the 'rebel' Indian Cricket League appears to have been a factor in Lancashire letting him go.
The unofficial status of the ICL remains a problem for the counties who field players with connections to the Twenty20 competition.
Kent, who finished runners-up in the Twenty Cup this summer, qualified for the Indian Premier League Champions League only to be told they were not invited because they had fielded ICL players.
Lancashire chief executive Jim Cumbes said: "Although not a determining factor, any player's allegiance to the ICL does make it difficult for English counties, simply because the England and Wales Cricket Board are tightening regulations on unauthorised competitions, as are the International Cricket Council.
"Stuart has been a top-class player and has served us superbly in the time he has been here.
"But the club is committed to giving younger members of the squad the opportunity to grow, and the cricket committee felt the time was right for other players to take on added responsibilities."
Cricket manager Mike Watkinson paid tribute to the Australian, adding: "Stuart was one of my very first signings when I took over as cricket manager, and has always given tremendous service to the club," he said.
"He is a quality player who takes great pride in passing on his knowledge to anyone who needs a helping hand.
"He is highly respected in the dressing room and popular with both members and supporters. We wish him and his family all the best for the future."
Chapple, who made his debut for Lancashire in 1992, said he was honoured to have been named as captain for next season.
"I'm absolutely delighted and very proud to be named as captain of Lancashire," said the 34-year-old all-rounder.
"It's a privilege to play for such a big county, and an even bigger honour to be captaining the club I've been involved with for the past 18 years.
"I'm a product of the Lancashire system - and I look forward to leading a very talented squad of players to future success."