Corporal Apiata, a highly decorated member of the New Zealand Special Air Service (NZSAS), has been a soldier for 23 years.
Minister of Defence Jonathan Coleman said Apiata had decided to "move on to the next phase of his life".
"It's always time for reflection when someone leaves but people leave NZDF all the time," Dr Coleman said.
"He's given great service to New Zealand, and his [Victoria Cross] speaks for itself. It's a real credit to him but also to the SAS and I think we can be very proud of all he and the unit have achieved over a long period of time."
Asked why Apiata planned to leave the Defence Force, Dr Coleman said: "He has been in the SAS for 10 years now, I would assume that he's just decided that it's time to do something else with his life."
